BEFORE THE AUCTION

What types of properties do we sell?
Mostly Residential, Farms and Land and sometimes Commercial.

Where are the auctions held?
Unless specified otherwise all auctions are held at the location of the real estate being sold.

Who can come to the auctions?
Anyone can come but if you wish to bid you need to register either prior to the auction day or at the auction before it starts.

How do I get a pre-auction “Bidder Packet” and what is it?
A bidder packet usually includes as much of the following information as we have available. Advertising information including a photo, property info, tax info, deed, plot plan, the sales contract that the purchaser will be required to sign on the auction day and any other information that we obtain that might help a potential buyer to make an informed decision. Bidder packets are e-mailed and can be requested on our web site or by calling 717.367.8000. The packets are also available at the auction for those who register.

How can I be assured that I will be able to get a clear title (good deed without judgments)?
ALL properties that are sold are guaranteed to be free of judgments, liens and encumbrances (that would prevent standard title insurance) including taxes liens. The deed is guaranteed to be provided at settlement to the purchaser so that purchaser can obtain title insurance from a reputable title company.

When can I inspect the property?
The property can be inspected at the open house(s) which are usually scheduled 1-3 weeks prior to an auction. The property is also open for inspection 1 hour prior to the auction. Prospective buyers are encouraged to inspect the property prior to the auction and may hire a professional inspector if they so choose. NO guaranteed is made that an inspection can be accommodated other that published times.

Are there any guarantees as to the condition of the property?
NO. ALL PROPERTIES ARE SOLD AS IS with NO warranties expressed or implied as to condition. The only thing guaranteed at these auctions is that the buyer will get a deed that is clear. A deed that would enable the buyer to obtain title insurance, just like any other typical real estate purchase. All information provided is believed to be accurate but not guaranteed. Most times a disclosure notice is provided which gives some information about the history of the property. In cases of estates often little is actually known about the property.

Are all properties sold to the highest bidder regardless of the price?
The answer to the question is dependent on how the property is presented. There are three methods that can be utilized to sell the real estate at auction.

  1. “Published Reserve” – If we advertise and promote the property with a published reserve – The property will be sold to the highest bidder over that number. For example: “This property selling to the highest bidder over $ (some number)” When the property is advertised this way the property will be sold to the highest bidder above the published number. This number may not have much or any correlation to the market value which may be much higher. The bidding process starts at the published number and the property is sold to the highest bidder usually within ten minutes or less and without any recess in the bidding process.
  2. “Absolute” – If the property is advertised as being sold “Absolute” it will be sold to the highest bidder. Once the bidding starts the auction cannot be postponed or cancelled and must be sold to the highest bidder no matter what the price. Usually there are no recesses in the bidding process and the property is sold in a very short time frame.
  3. “Confidential Reserve” – Properties not advertised in one of the other two above mention ways are sold with a confidential reserve. The property is advertised with a low “opening bid” and then sold to the highest bidder. If the price does not meet the pre-determined confidential reserve price, the property is sold “subject to seller confirmation”. The seller will have two weeks after the auction to decide to accept or reject the contract. At the auction the seller is bound by contract with a non-refundable deposit. If the reserve expectations are met the property is sold and bound under contract with a non-refundable deposit.

What is a “Buyer’s Premium”?
A buyer’s premium is an extra charge that the buyer pays on top of the purchase price. This is paid to the Auction Company to help defray the costs associated with the marketing of the real estate. The premium is listed in the ad usually as a percentage and is added to the purchase price. Example: $100,000.00 sales price with a 3% buyers premium makes the final purchase price $103,000. The buyer is then required to make the deposit based on the $103,000.

Must I have financing prearranged before the auction?
YES YES and YES. The sale of the property is not contingent on your ability to obtain financing after the sale. All financing arrangements must be done prior to the auction day. Usually the seller is not offering any type of financing on the property being sold. Any exceptions for seller financing offers would be stated in the ads.

Are there any contingencies allowed in the sales contract?
NO. The purchaser must sign the sales agreement as presented and is required to go to settlement within the allotted time frame. If for any reason the purchaser cannot go to settlement, they would be liable for loss of the deposit and any other remedies specified in the sales contact.

What are the closing costs?
The closing costs that the buyer would be required to pay at settlement are the standard and customary costs that a typical buyer would pay in the county that the property is sold. Pennsylvania real estate transfer tax is the responsibility of the buyer unless stated otherwise in the auction ad.

AT THE AUCTION

What is required to come to the auction?
All registered bidders must present the following at the auction:

  1. A $5,000 bank cashier’s check made payable to yourself. This check must be shown at registration auction day. If you are the successful bidder, you will be required to endorse this check over to the Auction Company. A personal check instead of the cashier’s check can be acceptable IF it is pre-approved by the Auction Company PRIOR TO THE AUCTION DAY
    A valid picture government ID as proof of identification ( Ex. driver’s license).
    The winning bidder will need to provide payment in terms of cash, personal or corporate check for any additional amounts above the $5,000 cashier’s check to equal to the required deposit inclusive of the buyers premium. The required deposit is usually 10% with a minimum of $5,000.
    Example:
    Purchase price $100,000
    Buyers premium $3,000 (3%)
    Total $103,000
    10% Required Deposit of $10,300
    Cashier’s Check of $5,000
    Other funds needed at auction for winning bidder $5,300

When will the bidders know who is the successful bidder?
When the auctioneer says sold, the party who is the high bidder will be identified and that person is then considered the purchaser. They will need to immediately meet with the auctioneer to sign the sales agreement and make the deposit.

If I am the successful bidder when can I get possession of the property?
Possession is given at settlement which is usually required within 30-45 days of the auction day. Seller’s will frequently be willing to settle before the end of the 45 days.

AFTER THE AUCTION

When will settlement occur?
Settlement must occur within the stated time frame (usually 30 or 45 days) of the auction day or from the date the seller confirms. If the purchaser wants a quick settlement, the seller may often be willing to accommodate that as soon as it can reasonably be scheduled.

Where does settlement occur?
Unless stated other wise the settlement can occur at the settlement agent of the buyers choice in the county of the real estate sold.

What will be needed at settlement?
Whatever the closing agent would require which would include the balance of the purchase price and typical settlement costs.

OTHER

What do I do if I am considering selling a piece of real estate?
Call Mark Diffenderfer on his cell 717.367.8000 or email at mark@d-auctions.net