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How does an estate auction work if I was interested in buying a property listed?

May 13th, 2012 Leave a comment Go to comments

I am in AZ. I am interested in a property that is supposed to be auctioned soon. How does this work for the buyer? Are there hidden fees that I responsible for at close if I am winning bidder? What paperwork is necessary on my end before I go into the auction?

They will demand that you produce a cashiers check at the front door. If you are the winning bidder, you will go immediately to a lender’s table to be approved for the loan. You will have to close the sale in 30 days. The buyer never used to pay any fees. You just bought the house. Recently in Arizona, the auctioneers are making you pay a 5% "buyers fee". That is added to the purchase price.
The sale will probably be "as is" so bid low..

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  1. Steve D
    May 13th, 2012 at 18:24 | #1
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    Depends on the rules and regulations and type of auction. If this is a true estate auction (someone died and the executor of the estate is selling the land by auction) then just call the auction company to find out what the terms are. If this is a foreclosure or tax foreclosure auction, call the sheriff’s department in the jurisdiction to see how to get hold of teh terms.
    References :

  2. realtor.sailor
    May 13th, 2012 at 19:02 | #2
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    The main thing to remember is that you can’t make your bid subject to financing. You must have the funds to close and while you could get pre-approved for a loan, pre-approval is conditioned upon an appraisal and you can’t get an appraisal until you have a property under contract. At most auctions the winning bidder pays a buyer’s premium, the commission and that’s added to the winning bid.

    realtor.sailor
    References :
    I’m a Realtor

  3. Ed Atun
    May 13th, 2012 at 19:51 | #3
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    They will demand that you produce a cashiers check at the front door. If you are the winning bidder, you will go immediately to a lender’s table to be approved for the loan. You will have to close the sale in 30 days. The buyer never used to pay any fees. You just bought the house. Recently in Arizona, the auctioneers are making you pay a 5% "buyers fee". That is added to the purchase price.
    The sale will probably be "as is" so bid low..
    References :

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