Buying real estate at auction is easy. The following categories will provide a quick overview to help educate you about the auction process.
View the Property
All of the properties that we offer for sale are available for viewing at one or more pre-set open house times. The properties are available for public inspection during each open house period. Some properties will be available for public viewing with no appointment required while others will require that you make an appointment. If an appointment is required, this will be communicated. If you aren’t available to view the property on any of the pre-established open house dates, we’d be pleased to arrange alternate viewing times for all qualified candidates.
All Tasabah & Associates auction properties are sold “As-Is” meaning the properties are selling without warranties as to its condition and/or fitness of the properties for a particular use. You are solely responsible for examining and evaluating the properties for your own protection. Contracts are not contingent on buyer or lender inspections. You should make all inspections prior to bidding.
Although some consumers feel the term “As-Is” is a red flag, the opposite is generally the case in most real estate auctions. Tasabah & Associates provides bidders with public information on the property, which may include: a title search, surveys, zoning, environmental reports, financing, and disclosures. This information should give you the confidence to participate in an “As-Is” auction. Ultimately, it is your responsibility to do your own inspections and due diligence prior to bidding.
Request a Buyer Information Packet
If you have some interest in bidding on a property, make sure that you get a Property Information Packet from Tasabah & Associates. Most of the property information is listed on the Internet, but the complete package including surveys and other drawings, financial information, detailed contracts; vendor disclosure statement, etc. can be obtained by contacting Tasabah & Associates. You may not bid on a property at Tasabah & Associates Auctions until you have signed that you have received, read and understand the property information packet.
Do your Due Diligence
Feel free to hire a building inspector or real estate appraiser before auction day to inspect the property that you intend to bid on so you can be confident about your buying decision. We’ll make special arrangements to have your inspector study the property. Ask lots of questions before auction day about the property and or business that you intend to bid on. Acquire an understanding of the value of properties in the neighborhood, community, city or region that the property is located in. Tasabah & Associates represents the Seller of the property exclusively.
When Tasabah & Associates, llc sells a property, it is for cash, with no conditions and typically closing in 30 to 45 days. This means that you will not be permitted to bid on a conditional basis. You must know prior to bidding that you are pre-approved for a mortgage form a bank or other financing source, or that you have the cash in hand. If you require financing assistance, speak with Tasabah & Associates, llc and we’ll do our best to assist you.
Once in a while when dealing with large family trusts, commercial properties and/or business, a seller financing option is offered. If this is the case, the financing option is clearly published on all property marketing materials.
When speaking with your lender about financing, always present him/her with the complete property information package. This will have all of the pertinent information that they will require to pre-approve you, less the price. If your lender forces you to put a price on the property, tell your lender the highest amount you’d be prepared to pay for the property and see if you can get approved. If you get approved at your highest price, then you know you can pay any number less than your approved number and perhaps just a little more, if you have to.
Speak with the Tasabah & Associates
Being honest with Auction Company representatives about your level of interest in the property will increase your chances of buying the property. Most properties sold by Tasabah & Associates, llc are sold subject to owner confirmation, giving the Seller the option to accept or reject the bid. Based on this premise, we sell almost every property (approx 90%) that we market though the auction process. During the auction of any asset, a Seller has a price in mind of what he’d like to sell for and a Buyer has a price in mind of what he’d like to buy for. AS a buyer, by being honest with the auction representatives about your level of interest in the property, we can pre-prepare the Seller fore the actual sale result several days prior to the auction, therefore increasing you’re chances of buying the property.
Understand The Seller
As a Buyer you should understand the Seller’s level of motivation. In the case of Tasabah & Associates, llc Auction, our Sellers are always clear in their intentions to sell. At Tasabah & Associates, llc we select our customers carefully. Our Seller’s aren’t just giving the process a shot. Our Seller shave made substantial financial investments in the marketing effort and in preparing due diligence information for the sale. Either way, large property or small property, the Seller is demonstrating a high commitment level to selling, far beyond the act of hiring a local agent, placing for sale sign on the front lawn and placing the listing in an MLS book.
Be Prepared...Be Ready!!
The auction itself can move quickly. If you are a first-time bidder, you might be surprised to learn that it takes a short period of time, usually less than 15 minutes, to sell a property. Having your maximum bidding price in mind and preparing to bid accordingly takes the feeling of intimidation out of the process.
Registration ~ Bid Certification
Typically 1 hour prior to auctioning the Real Estate you can register for a buyer number. A valid driver’s license is required, and a Bid Certification completed. You will be expected to show proof of the mandatory earnest money deposit. Generally a cashier’s check, check, or cash is sufficient to secure a bidder number, but in some instances, an additional earnest money deposit could be required.
In addition, registration is required should you choose to bid online. You must complete the registration form, provide information, and accept the Terms and Conditions. If you are interested in bidding on more than one property, required funds for EACH property must be submitted. Registrations will be processed and notification will be sent to you within 24 hours of the Earnest Money Deposit(s) being secured.
Before the Bidding Begins
The auction begins promptly at the appointed time with opening remarks summarizing the terms of sale, the methods of bidding, and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the auctioneer answering any final questions.
Bidding Begins ~ working with the Bidder Assistant
The Bidder Assistants are licensed Real Estate Agents working for Tasabah & Associates, LLC. They are positioned among the auction attendees to help all bidders communicate their offers to the Auctioneer. Bidders place a bid by raising their bidder card. If a bid was not intended, the mistake is corrected by simply notifying a Bidder Assistant. Any tie bids or other issues regarding who has the high bid are always resolved by the Auctioneer, who has complete and final authority.
From the first bid, things move quickly with bidders offering their bids up to the price they are willing to pay. When it is determined that the final bid has been made the Auctioneer will announce, “Going once, going twice, etc.” After the announcement the Auctioneer will identify and congratulate the high bidder. Once the high bidder has been congratulated the high bidder will execute the Real Estate Purchase Agreement.
~In a “subject to confirmation” auction, the seller retains the right to accept or reject the high bid within a specified time after the auction. If the auction is for a single property such as a home, this concludes the auction and the purchaser simply executes the Real Estate Purchase Agreement and makes the required Earnest Money Deposit.
Closing on the property typically takes place within 30-45 days from the date of the auction. Closing is not contingent on financing, appraisals, or inspections.