Auction FAQs
Frequently Asked Questions
Seller Questions
Q: Why would someone sell real estate at auction instead of pricing it traditionally?
A: Auctions are fast, efficient, and produce fair market value, creating urgency and ensuring a competitive bidding process.
Q: How can I be sure I am getting a fair price?
A: True market value is revealed through open, competitive bidding, providing transparency and fairness while creating a sense of demand/urgency.
Q: How are properties usually advertised for auction?
A: We utilize various methods, including MLS listings, SEO enhanced digital marketing, dynamic signage, email marketing, brochures, newspapers, internet, and phone solicitations for effective advertising.
Q: What happens if the property doesn’t sell at auction?
A: You have no obligation to sell if your reserve price is not met. Offers may still be considered post-auction, and aggressive marketing continues until the property is put under contract and sold.
Q: How soon can I be paid?
A: Real estate closes in 30-45 days, while personal property auctions can settle in two weeks or less.
Q: Do I need to make updates or repairs to my property before it is auctioned?
A: No, you do not need to make any updates or repairs prior to listing. However, a team member from Creative Auction Solutions can help advise you on what inexpensive repairs may help maximize your sale price.
Q: What happens if I think the price on my house is too low?
A: You have no obligation to sell if your reserve price is not met. We offer two auction methods…absolute (sells to highest bidder regardless of price) and reserve (subject to seller confirmation).
Q: What is the commission fee for an auction?
A: We don’t charge sellers a commission fee; the buyer covers that expense by paying a “buyers premium” fee.
Q: Where will my auction be held?
A: In todays’s day and age, online auction tend to bring the best results. However, we will discuss the best solution for your property during a consultation.
Q: Do I have to have an inspection?
A: No, there are no buyer inspections allowed at our auctions. We do advise our sellers to have a basic 4-point inspection completed prior to the auction to provide buyers so they can make an informed decision when bidding.
Q: How far in advance do we need to schedule the auction?
A: Contact us as early as possible so we can set dates and begin our marketing process.
Buyer / Bidding Questions
Q: How does buying real estate at an auction differ from a traditional transaction?
A: Similar to a traditional deal but with competitive bidding; do due diligence, attend preview dates, and be prepared to bid against other buyers.
Q: What’s required to bid at an auction?
A: Registration is a must. Follow the instructions listed for registration. Contact the auctioneer with any questions or help registering.
Q: What happens if I am the winning bidder?
A: If you are the winning bidder, you must sign a purchase & sale agreement along with submit a deposit and be prepared to close within 30-45 days.
Q: How are auctions conducted?
A: Via an open bidding process. Easily place your bids online, keep track of where the bid is at and call the auctioneer if you need any assistance with bidding, we are available to help throughout.
Q: To whom do I talk if I don’t understand the auction contract?
A: Ensure you’re informed before attending. We’re here to answer questions, and the contract is available for your review. If you still have questions, we recommend seeking legal advice.
Q: Is my deposit refundable if I change my mind after the auction?
A: Due diligence before bidding is crucial, as the initial deposit may be forfeited if you don’t close.
Q: Do I need to be represented by a real estate broker?
A: Not a requirement, but you can be represented by a buyer/broker if you wish. They MUST be registered within 24 hours of your registration as a bidder.
Q: Do auction sales have contingencies on inspections?
A: Inspection of properties are done beforehand and during our advertised public viewing time periods; our sales are on an “as-is” basis with no warranties.
Q: When can I inspect the property?
A: Properties are generally available for viewing by appointment or during specified advance open house/public viewing times.
Q: What happens if the seller cannot settle on the property?
A: The seller must provide free and clear title; if not, the transaction will not go through and buyers deposit is refunded
Q: Who is responsible for closing costs?
A: Buyers are responsible for all closing costs as per our contracts including a buyers premium.
Q: How can I be sure I am getting a fair price?
A: True market value is revealed through competitive bidding, ensuring fairness and transparency.
Q: Who usually buys at a real estate auction?
A: Anyone can benefit from buying at an auction. Only real buyers participate, eliminating browsers and time-wasters.
Broker / Agent Questions
Q: What are the advantages of real estate agents selling their listings with Creative Auction Solutions?
A: Increased exposure, expanded service offerings, earn full commissions or referral fees, potential for faster or increased sales.
Q: How can real estate agents bring buyers to auctions?
A: Agents receive commissions for bringing buyers to auction
