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Who bids at your auctions?
All types of people! First-Time Home Buyers,
Seasoned Investors, First-Time Investors, Move-Up
Buyers! There is no cost to Bid at the auction! As
Real Estate Professionals, we will help you through
the process! Our goal is to make the auction fun and
easy! Show up early on the day of Auction and attend
a demo auction. Let our Professional Auctioneer show
you how it’s done!
What’s the difference in buying at
Auctions rather than buying conventionally?
Throughout history, residential properties in the
United States have been sold using the Auction
process. In fact, selling real property at auction
is a far older process than the process that’s now
considered conventional (brokerage sales).
In one sense, there’s really little difference. Real
estate is always sold to “the highest bidder,”
regardless of the method used. Sellers are
interested in selling their property to a qualified
buyer for the highest price. It is the same, whether
the sale takes place “on the street” or “at the
Auction House”.
Using WRE’s simple Auction process allows you to
view and or buy a property (or many properties)
quickly. In fact, many properties have been
exchanged via the Auction process for years before
the establishment of brokerage sales.
Will I be able to “steal” a property at a
“low-ball” bid?
Not always. Modern real estate Auctions attract not
only First-time home buyers and move-up buyers but
also prudent, professional investors who are looking
to purchase properties that fit their business plans
and needs. You’ll want to do your homework, inspect
the property that you bid on and make sure you get
the “right deal” that works for you.
Aren’t Auctions selling only “run down” or
“distressed homes?
Certainly not! WRE works with all types of sellers,
and all types of residential properties. The
properties we offer are owned by builders, banks,
investors, individual home owners and others who are
using WRE’s auction process to market and sell their
homes quickly and efficiently. Sellers are motivated
to use our efficient and timely Auction process for
a variety of reasons. They many have an urgent need
to move due to a new job or a change in family
status. Or, they may have chosen the Auction process
which will move their property quicker and more
efficiently than the conventional brokerage sales
process.
Like any homes offered for sale, the condition of
each property may vary. Many are in excellent shape,
and some need extra attention. Many of the Builder
homes are brand new! Like any purchase, it is up to
you to do your homework on the property that you are
interested in and be certain of the condition of the
property before the Auction.
What about inspecting the property that I
am interested in bidding on?
Absolutely! You should inspect any property that you
intend to bid on at Auction. All of our properties
are sold “as is”, meaning they are sold in their
existing condition and are not subject to inspection
or review by a purchaser after the sale! Pre-Auction
inspections are crucial to knowing the condition of
any property and how much you are willing to bid on
that property.
All properties are available for your inspection
before the day of the Auction Day. You can only
inspect a property before the day of Auction. Anyone
bidding at Auction is assumed to have inspected the
property that they are bidding on prior to the day
of Auction!
Before the day of Auction, you can have any property
inspected by a property inspector (at your own
expense). Again, the inspection must be done before
the day of Auction!
When you register and receive your bidding packet at
the Auction, you will certify that you have
inspected any property(s) that you are bidding on;
that you understand that properties are sold “as is”
at the auction and that when you submit a Winning
Bid on any property, you are waiving any right to
further inspection prior to contracting the purchase
of the property.
To find out showing times on a particular property
open for your inspection and prior to the Auction
date or to arrange an inspection of any property(s),
please contract WRE by phone or through our website.
What types of properties are you selling at Auction?
All of the properties that we sell are residential
properties. They can be single-family homes,
duplexes, triplexes, condominiums and townhouses.
They are properties belonging to builders,
individual home owners, investors, banks, lenders
and others. All of these properties are promoted by
WRE to sell at auction. The bottom-line price that
will be accepted as a final sale has already been
set by the seller and WRE for each property. This
means that when the Auctioneer takes your bid as the
Winning Bid on the property, the purchase price has
already been established by the seller.
Though rare, some properties that we offer are being
sold for individual owners who are in the process of
being foreclosed on by their lender (“Short Sales”).
All Short Sale properties that are in the process of
foreclosure are identified as such before and during
the Auction process. Short Sales properties are
contracted for sale just like other properties and
the bottom-line price has been established by the
individual seller and WRE. However, (unlike all of
our other properties) Short Sales properties have
not been pre-approved for sale by the foreclosing
lender. This means that the foreclosing lender must
approve your purchase terms after you submit your
Winning Bid and contract for the sale with the title
company at the Auction. The Title Company will
submit your contract to the foreclosing lender
immediately after the Auction and you will know that
they have approved the sale prior to closing.
Remember, Short Sales are not always short! It truly
depends on the expediency of the seller! By closing
time, you will receive good title for any short
sale.
How do I find out where the Auction is
held?
No Problem! We’ll let you know weeks in advance.
Check out our Auction schedule on the website. We’ll
give you the location, time and date for all
Auctions held in Colorado. We’ll also provide you
with a list of properties that are available for
viewing and inspection before the day of Auction.
How do I register to bid?
It is best if you pre-register for the Auction on
our website no later than 48 hours prior to the
Auction Day. That is the most efficient process for
you. It also helps you to pre-qualify for a loan so
that you can bid on property(s) at the Auction.
Pre-registering allows you to print up your
registration forms and show up with them completed
and in-hand. By pre-registering, you will be able to
enter the Auction with ease, receive a bidder number
and start having fun!
If you can’t pre-register, come on down to the
Auction anyway! We’re happy to register you at the
Auction. Whether you pre-register or just show up at
the door, there’s no cost to attend the Auction!
When you come to the auction you will be required to
produce a driver’s license or other photo-id
documenting your identity consistent with the
registration forms (whether you pre-registered or
register at the door).
What is required in order to bid at the Auction?
In order to receive a bidding number and be
authorized to bid at the Auction there are two
requirements: a) you must have Earnest Money of
$2,500 to put down on any property that you have the
winning bid on; and, b) you must be pre-qualified
for a cash sale or for a loan from a lender or
financial institution. In order for your final bid
to be accepted as the winning bid, we will confirm
that you are pre-qualified for a cash sale or for a
loan in an amount that is sufficient to contract for
the property.
How do I meet the Earnest Money Requirement?
To meet the earnest money requirement, simply bring
a Cashiers Check from your bank for $2,500.00, made
payable to yourself. If you win a bid on a property,
you will deposit this Cashiers Check with the Title
Company (on hand at the Auction) in their escrow
account to hold pending closing on the property.
Your deposit will remain safe in the Title Company’s
escrow account until the closing date.
How do I meet the Pre-Qualification Requirement?
You can meet the requirement of being Pre-Qualified
for bidding at the Auction in either of two ways:
1. Being Pre-Qualified for a cash purchase by
bringing adequate proof of available cash funds for
the property you bid on. Such proof can be a current
official bank statement showing available cash,
stocks and bonds, a bank letter of guarantee, etc.
2. Being Pre-Qualified for a loan means bringing a
letter from a lender or financial institution
stating that you are pre-qualified for a loan for
the property you purchase, with a stated maximum
loan amount. If you do not have an existing lender,
you will be referred to our Preferred Lender as part
of the process when you Pre-Register through our
website. If you are not Pre-Qualified for a loan
prior to the day of the Auction, you will be
referred to our Preferred Lender when you show up at
the Auction site to register. Innovative Lending
Solutions 1-888-768-9955, will be prepared to work
with you to Pre-Qualify you for a loan at the
Auction, so that you can obtain a bidding number and
bid on properties at the Auction.
If you have any questions about being Pre-Qualified
for bidding at the Auction, please contact us well
in advance of the Auction. Our professional
representatives will work with you to make sure that
you meet this requirement for bidding before the day
of the Auction.
How does the Auction work?
It’s simple and fun! When the Auctioneer announces
you as the winning bidder, your Pre-Qualification
lender letter (or cash purchase Pre-Qualification
proof) will be checked by our representatives to
confirm that you are Pre-Qualified in an amount
sufficient to support the winning bid and the Final
Purchase Price of the home. Assuming this to be the
case, you will receive a winning bidder number for
the property and will be escorted to the sales area
at the Auction House where you’ll meet with a
representative of the Title Company to deposit your
Earnest Money; provide the sales agent with your
Pre-Qualification verification and sign the
documents to purchase the home. Your Earnest Money
check will be deposited in the Title Company’s
escrow account and your property will be under
contract for sale to you.
What is the Final Purchase Price of the home that I
buy at Auction?
Auction companies charge a “Buyer’s Premium” to
winning bidders to help cover costs for the Auction
sales process. This is similar (though usually much
less) to a commission that is paid to a broker for
selling a house through the conventional process.
WRE’s Buyer’s Premium is 5% of the Winning Bid
Price. Our Buyer’s Premium is added to the Winning
Bid Price to become the Final Purchase Price (the
final price that you contract to pay for the
property).
For example, if the Winning Bid on a property is
$100,000, then the Buyer’s Premium would be $5,000
(5% of the Winning Bid). The Final Purchase Price
for this example property would be $105,000. Your
funding ability to purchase any property must
include enough money to cover the Buyer’s Premium
with no exceptions.
A “Seller Confirmation” may be required on certain
properties where the highest bidder’s bid does not
meet or exceed a Reserve Price set by the Seller. In
such case, then the Auctioneer may accept the
highest bid subject to Seller Confirmation. If your
Winning Bid is subject to Seller Confirmation, you
will be advised of that fact by the Auctioneer
before you sign the Purchase Agreement following the
Winning Bid. In the event Seller Confirmation is
required then the Seller must approve (or can deny)
the purchase based on the winning bid within seven
(7) business days. In the event of denial of Seller
confirmation by the Seller, the Bidder will receive
a refund of his Earnest Money in full.
Do your properties come with good title?
Upon submitting a Winning Bid you will meet with a
Title Company representative at the Auction site
after signing the sales agreement and deposit your
earnest money into their escrow account. The Title
Company and on-site sales agent will arrange and
coordinate for closing on the property and will
handle the closing to ensure that all requirements
to convey good title to you are met at closing.
Depending upon the type of property you purchase,
most closings will occur within 30 to 45 days. The
actual closing period will be set out in the sales
contract you sign at the Auction. Sometimes, we can
close certain properties in less than 30 days.
At closing, all prior liens against the property
will be eliminated and your title to the property
(subject to your loan on the property…if any) will
then be recorded by the Title Company. As part of
the closing process, the Title Company will provide
you with a Title Insurance Policy insuring that you
have good title to the property you have purchased.
Any Short Sale property will not close until the
Title Company has obtained approval for all terms of
the sale from the foreclosing lender of the seller.
The closing following such approval will eliminate
the lien on the property by that lender. Again, the
property will only close with good title.
Is there financing available at the Auction?
Our Preferred Lender is a Mortgage Banker offering
competitive financing programs for all types of
residential properties. Bank Loan Officers will be
on hand prior to, during and after the Auction
Process to help you in any way! In order to submit a
bid at the Auction you are required to have a
lenders letter Pre-Qualifying you for a loan and
stating the maximum amount of the loan. This is so
that we can authorize your Winning Bid for a
property.
If you do not have the requisite Pre-Qualification
on the day of the Auction, you will be introduced to
our Preferred Lender at the Auction so you can
obtain the Pre-Qualification and get your bidding
number to bid at the Auction.
You may Pre-Qualify with our Preferred Lender prior
to the Auction Day by going to our website and
following the links to that Preferred Lender’s
website. If you have your own lender, just follow
their Pre-Qualification process for a loan and that
lender’s letter to the Auction. The letter should
state the Pre-Qualification terms and the maximum
loan amount for which you are qualified in
purchasing a home.
Can I Lose My Earnest Money Deposit if I Do Not
Close on the Property?
If you have submitted a Winning Bid and have signed
a contract for sale with the Title Company at the
Auction, then you will lose your Earnest Money if
you do not close on the property at the closing
required by the contract and scheduled by the Title
Company.
Remember, you must be Pre-Qualified to bid and have
$2,500 in Earnest Money to bid at the Auction. Your
Pre-Qualification is checked upon acceptance of your
bid as the Winning Bid for a property. This means
that upon acceptance of the Winning Bid which you
submit, you have established to WRE, the Auctioneer
and the seller that you have the financial ability
to meet the sales term and the Final Purchase Price
for the Property!
When you submit a Winning Bid, the bidding is closed
by the Auctioneer on that particular property. All
other bidders and purchasers at the auction are
prohibited from bidding on the same property.
Acceptance of your Winning Bid means that the Seller
has agreed to sell the property to you for the Final
Purchase Price established by your bid. Since all
properties are sold “as is” at the auction, there is
no other condition remaining to be met by WRE or the
seller to finalize the sale.
Immediately after submitting the Winning Bid you
will meet with a WRE representative and sign the
sales contract agreeing to purchase the property for
the Final Purchase Price based upon your Winning Bid
plus the 5% Buyer’s Premium. Signing this contract
and depositing the Earnest Money means that you have
agreed to purchase the property for the stated price
and to finalize that transaction when the Title
Company closes the sale.
If you decide to back out of purchasing the property
prior to closing, for any reason, then your Earnest
Money deposit will be forfeited. Remember, by
submitting a Winning Bid, signing a Sales Contract,
depositing your Earnest Money Check and providing a
lender Pre-Qualification Letter you are representing
that you will close the deal!
The only exceptions to the forfeiture of Earnest
Money are:
1. If the sale of the property does not close as in
the case of a Short Sale property when the existing
foreclosing lender (with a lien on the property)
will not approve the sale prior to closing.
2. If your Winning Bid was accepted and you signed
your Purchase Agreement subject to Sellers
Confirmation, then you will be refunded your Earnest
Money in full if the Seller denies such
confirmation.
In the case of these two events and only in such
cases, you will be refunded your Earnest Money.
Can I bring my Real Estate Broker to the
Auction?
Yes, licensed real estate brokers are encouraged to
help you participate in the Auction process by
directly showing you the properties to be auctioned
for your inspection prior to the Auction. They can
come with you to the Auction and advise you through
the execution of the contract (s) for the properties
you purchase. When a broker has shown you the
property, attended the auction with you and helps
you through the completion of the sales contract
with the Title Company, then we will pay that broker
a buyers commission of 1% of the Winning Bid that
you placed (the price before the Buyers Premium is
added) upon closing of the sale. All buyer brokers
are required to register as such at our website
prior to the Auction or when registering at the
Auction. There is a Broker Registration form that
they must complete online or complete and sign at
the Auction.
FOR MORE INFORMATION ABOUT THE AUCTION PROCESS
PLEASE SEE OUR REVIEW OF THE AUCTION PROCESS HERE.
For additional information you can contact Western
Real Estate via phone at:
1-888-733-3387 Toll Free
720-810-9368
On the Web at
www.easiestauctions.com
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