Common Real Estate Auction Questions
Buying Real Estate at Auction is becoming more popular every year. Here are some frequently asked questions about how to buy Real Estate at Auction:

Is This A Normal Auction?
Yes. King Auction Group will hold a public, oral auction on the premises. Once an opening bid is received or called out, the auction process begins and the bidding will advance above the opening bid in increments established by the auctioneer.

How Can I Participate In This Real Estate Auction?
To be eligible to bid, a potential buyer must register with our office either prior to the auction or the day of the auction. All bidders must post a pre-determined amount of money in the form of a certified or cashier's check. Contact our office for the amount of the deposit as each auction sale is different. Personal checks may be accepted in certain situations, but you must contact our office prior to the auction. If you are not the successful bidder, you get your check back immediately. If you are the high bidder, that check becomes part of your purchase contract; you sign an agreement of sale incorporating the auction terms.

Does The Owner Have To Take The Highest Bid That Day?
It depends. Almost all of our real estate auction sales have "reserve" numbers that are determined by the seller. The reserve number is not disclosed before the auction. If the high bid the day of the sale exceed the seller's reserve number, then it is automatically "confirmed" and the buyer must proceed to the closing. If the high bid does not meet the seller's reserve number, the seller has 72 hours to decide whether to accept the lower number.

What Is Meant By "Suggested Opening Bid?"
The suggested opening bid is the number that the auctioneer considers a fair starting point for the oral auction. The suggested opening bid is not the seller's "reserve" number.

If I Am The High Bidder, Is My Bid Contingent Upon Me Obtaining a Mortgage?
Not typically. Real estate auction sales are not usually contingent upon the buyer obtaining financing. Most of our auction buyers are pre-qualified by a mortgage broker or bank and know that they qualify for such a purchase. Should the buyer not be able to obtain financing and not close on the property, they forfeit the deposit money. Contact our office with any financing questions.

If I Am The High Bidder, Is My Bid Contingent Upon Any Inspections?
Generally no. Most real estate auctions are "as is, where is". Potential buyers often have inspections done before the auction. We can coordinate the inspection of the property at a convenient time. If you want to bid on a home but only if it is with an inspection contingency, please contact our office. The seller can make the decision to allow certain inspection contingencies and this has been done in the past.

Can I Purchase An Auction Property Prior To The Auction?
Absolutely. If a buyer make an offer prior to the auction sale and it is a number acceptable to the seller, the seller can decide to sign an agreement of sale and the auction will be canceled. This is a common occurrence and not out of the ordinary. Certain contingencies can be attached to the agreement of sale by the buyer in this situation. Contact our office for details.

What Is The "Buyer's Premium?"
The Buyer's Premium is an amount added to the high bid and incorporated into the total selling price. The amount of the Buyer's Premium is announced prior to each auction sale.