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AUCTION FACTS

  1. What is an Auction?
  2. Why do People Sell at Auctions?
  3. Does Anyone Get Bargains at Auctions?
  4. I've never been to an auction. How do I find out where and when they occur?
  5. How can I find out about buying a specific type of merchandise at auctions?
  6. What can I do if I'm confused or intimidated about buying at auctions?
  7. What types of claims about auctions should make me raise a red flag?
  8. If I can't get rock-bottom bargain prices, why should I buy at auctions?

1. What is an auction?

An auction is a method of marketing where the items sell to the highest bidders. Anyone in the crowd who is willing to pay the most will walk away with the merchandise. Auctioneers market their sales to draw the most buyers so that items will sell for top dollar.

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2. Why do people sell at auctions?

Sellers choose the auction method of marketing because, through competition among bidders, the items sell at or above current market value. There would be no reason for people to sell at auction if their property always sold for rock-bottom prices.

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3. Does anyone get bargains at auctions?

Yes, but remember: a bargain is in the eye of the beholder. If you see an item you want and are able to buy it for the price you were willing to pay for it, then it's a bargain for you. But a bargain for one may not be a bargain for another. For example, you may not see any value in a doll that is for sale at an auction. However, if the person standing next to you is a doll collector and is thrilled to make the winning bid of $3,000, he got a bargain.

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4. I've never been to an auction. How do I find out where and when they occur?

Look in your local newspaper for auction listings. Check our schedule here for all our local auctions! We send out and post flyers and newsletters announcing upcoming auctions. The National Auctioneers Association also offers an Online Calendar of Auctions which lists auctions by region.

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5. How can I find out about buying a specific type of merchandise at auctions?

From real estate to restaurant equipment, from antiques to agriculture, auctioneers maintain mailing lists for many various specialties. Contact auction companies and ask to be put on the mailing list for the specialty you're interested in.

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6. What can I do if I'm confused or intimidated about buying at auctions?

Follow these guidelines to become a confident auction consumer:

• Attend a free educational seminar on auctions. Many auctioneers conduct seminars which instruct auction newcomers on various auction terms, how to buy at auction, and what to expect at auctions.

• Attend auctions and watch how different auctioneers run their sales.

• Do your homework. For example, if you are interested in buying a specific type of merchandise, such as office equipment, research how much desks and chairs are sold for in retail and wholesale outlets. Go to the library and refer to price and value guides for different brands and types of office furniture. Ask the auctioneer for information about the merchandise she is selling that you're interested in. Then set a price you are willing to pay.

• Most auctioneers schedule a preview prior to the auction. Attend the preview and carefully inspect the merchandise that you are interested in, adjusting the price you have set, if necessary, according to your inspection.

• Arrive at the auction early and get a seat near the front where you can see the merchandise as it is sold, and where the auctioneer can see you when you bid.

• Introduce yourself to the auctioneer, ask her how she runs her auctions, when the item you want will be up for sale, and about her terms (such as whether you need to arrange for transporting the items you bought that day, whether a buyer's premium and/or tax applies, if checks are accepted, etc.).

• Tell the auctioneer which item you are interested in buying, and ask him to help you buy it.

• When the item you want comes up for sale, bid early so the auctioneer will see you and you won't risk being overlooked.

• Don't be intimidated by other bidders (sometimes others will try scare tactics, such as glaring at you, to get you to stop bidding on the items they want).

• Stick to the price you set, and don't bid more than you intended to.

• Keep track of each item you buy, including a brief description, the lot number, and the price you paid. Remember to calculate the buyer's premium and taxes, if applicable, so you won't be surprised at the cashier's table.

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7. What types of claims about auctions should make me raise a red flag?

Many advertisements, catalogs and seminars promise easy "get rich quick" schemes through buying at auctions. They may ask you to buy catalogs, auction listings, or videotapes to learn where auctions are, how to buy at auctions, and to be put on auction companies' mailing lists. Remember, you don't have to spend money to become a savvy auction consumer. The information these sources want to charge you for can be found for little or no cost in your local newspaper, at the library, or from professional auctioneers.

Also, beware of claims that houses, cars, and other property are available at auctions for "pennies on the dollar." Find out the rest of the story. What condition are the items in? Would they really be a bargain? Are there back taxes, repair bills, etc. to be paid?

Remembering the facts about auctions will help you be a smart auction consumer who avoids spending time and money on empty promises about "get rich quick" schemes.

Auctions are not a way to "get rich quick." But look at what auctions are: Auctions offer a variety of interesting, unique and valuable merchandise. Auctions allow consumers to set the price. Auctions ensure that the price you pay is the fair market value. And auctions enable you to find and buy your bargains.

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8. If I can't get rock-bottom bargain prices, why should I buy at auctions?

At an auction, consumers are assured of buying at the fair market value, because not only do they have a say in setting the price, they can get the items they want for just one bid over the next interested party. Additionally, auctions offer a wide selection of merchandise, including many valuable or unique, one-of-a-kind items not available elsewhere.

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From the National Auctioneers Association 

BY DAWN BURKE
Contributors: Bill Kurtz, Rob Doyle, Steve Van Gordon, Marcy Goldring, Dennis Eberhart, Renee Jones

 

FREQUENTLY ASKED QUESTIONS FROM SELLERS

  1. What are the advantages of auctioning real estate versus listing it at a stated price?
  2. What is “fair market value”?
  3. What types of properties sell at auction?
  4. What determines whether my property is a good candidate for auction?
  5. Can I auction a property that has a mortgage, taxes or liens owed?
  6. What do you mean by “insurable title”?
  7. Are there different kinds of real estate auctions?
  8. What does “absolute auction” mean?
  9. What does “subject to confirmation” mean?
  10. What is a “reserve” auction?
  11. What is a “stated minimum bid” auction?
  12. How does Rogers Auctioneers get compensated for services?
  13. What is a buyer’s premium?
  14. What is the usual timetable for a real estate auction?
  15. What type of marketing campaign will you use to sell my property?
  16. Where is the actual real estate auction held?
  17. I have not seen a real estate auction before. Can I come to an auction just to watch?
  18. How do I know whether potential buyers are qualified to buy my property?
  19. Will I sign an agreement if I decide to sell my property at auction?
  20. What paperwork will I need to provide if I list my property?
  21. Will potential bidders be able to view my property prior to the auction?
  22. What can I expect on auction day?
  23. What is a “bid assistant”?
  24. Where does the bidding start?
  25. What is a bid acknowledgment form?
  26. When and where does the closing take place?
  27. Is the closing different from any other real estate closing?
  28. What happens if the high bidder fails to close?
  29. What is “high bidder's choice,” and when is it used in a real estate auction?
  30. What does “auction by the acre” mean?
  31.  

1. What are the advantages of auctioning real estate versus listing it at a stated price?
When your property is “priced,” it leaves you open to under pricing or overpricing, and you will lose either way. If the price is set too low, the property sells quickly but equity is lost. The first bargain hunter that comes along finds a “steal,” perhaps making the profit that should have been yours. Likewise, if the price is too high, the property does not sell. It then has to be advertised again at a lower price or negotiated through haggling with one potential buyer at a time. Unless sold quickly and efficiently, real estate can become an expensive liability (taxes, maintenance, insurance, etc.). In addition, the process of hosting repeated showings and open houses can be disruptive and frustrating if a serious buyer does not come forth. Auctions create a sense of urgency and produce true fair market value. Simply put, when a group of serious buyers are brought together to compete, it drives the price upward. The competitive atmosphere then generates its own “buzz,” which leads to even more spirited bidding. As a result, auction is the only method of marketing that offers you the potential to receive more money for your property than you would have asked if pricing it outright.

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2. What is “fair market value”?
Fair market value is the price for which a property will sell on the open market between a willing buyer and a willing seller, neither being forced to buy or sell as of a specific date. Since auctions are the purest form of free enterprise, where the laws of supply and demand prevail, fair market value is the price that a property will fetch at a well-advertised auction. Other factors that come into consideration are location, age, condition, quality, size and desirability.

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3. What types of properties sell at auction?
All types. Rogers Auctioneers has sold vacant land, building lots, single-family homes, multi-family homes, commercial buildings, condos, townhouses, subdivisions, and industrial buildings.

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4. What determines whether my property is a good candidate for auction?
The most important factors are your motivation to sell and the marketability of the property. The ideal candidate for the Auction Method would be a motivated seller who owes less on the property than what the current market is expected bring. Factors such as condition, location and amenities are also key.

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5. Can I auction a property that has a mortgage, taxes or liens owed?
Yes, most sellers have a mortgage and/or other liens on their property. You have until the closing to pay off any outstanding debts and provide insurable title to the successful bidder.

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6. What do you mean by “insurable title”?
If a NC title insurance company will insure the property at closing, you have completed your obligation to the buyer. All Rogers Auctioneers property auction offerings are sold with good, insurable titles and no liens, judgments, mortgages or back taxes. If the title cannot be cleared, the down payment is refunded to the buyer.

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7. Are there different kinds of real estate auctions?
Yes, auctions can be "absolute," "subject to confirmation," with “reserve," or with a "stated minimum."

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8. What does “absolute auction” mean?
A property that is sold at absolute auction means that it is selling to the highest registered bidder regardless of price. There is no minimum, and the seller cannot reject the highest bid attained at the auction.

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9. What does “subject to confirmation” mean?
It means that the property is being offered to the highest bidder, subject to the seller accepting or rejecting the bid. Most Rogers Auctioneers property auctions are conducted subject to seller confirmation.

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10. What is a “reserve” auction?
It is similar to the “subject to confirmation” auction, except that there is an undisclosed reserve dollar amount set by the seller. The property cannot be sold unless the bidding meets or exceeds the reserve.

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11. What is a “stated minimum bid” auction?
It is an auction at which the seller announces the minimum bid before the auction starts and will sell the property once that bid is reached or exceeded. For example, if a property “shall sell at absolute auction at or above a minimum of $41,237," if anyone bids $41,237 or more, the property will sell.

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12. How does Rogers Auctioneers get compensated for services?
You, as the seller, pay a commission; however, the buyer offsets our commission in the form of a buyer’s premium. You are responsible for the marketing expenses. For our part, Rogers Auctioneers will provide you with a budget and timetable, and we will execute the marketing.

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13. What is a buyer’s premium?
A buyer’s premium is that portion of the commission paid by the buyer. It is usually a percentage of the bid price. The total sale price includes the high bid amount plus the buyer’s premium. For example, if a property sells for $100,000 and the buyer’s premium is 10%, the buyer will pay a total sale price of $110,000.

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14. What is the usual timetable for a real estate auction?
Typically, we recommend allowing 30 days from the time your property is listed until the auction date. This schedule ensures we have enough time for brochure distribution, posting signage, several rounds of advertising, and previewing. If this timeframe is not workable, we will explore other options with you.

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15. What type of marketing campaign will you use to sell my property?
Rogers Auctioneers conducts an extensive promotional campaign for your property. The plan includes advertising, signage, a website listing, emails, illustrated brochures. National, regional and local ads are run for three-and-a-half weeks prior to the auction. Brochures are mailed to adjacent property owners, several hundred neighbors, our database of proven buyers, and real estate agents. The timely marketing creates a sense of urgency, which drives the most serious buyers to your auction.

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16. Where is the actual real estate auction held?
Depending on the location and type of property, we will either conduct an “on-site” auction at the property under one of our tents or an “off-site” auction either inside a hotel ballroom, restaurant or other building suitable nearby. We will do a free site analysis for us to determine which would be a better auction environment for your specific circumstances.

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17. I have not seen a real estate auction before. Can I come to an auction just to watch?
Absolutely, we encourage anyone to attend and watch the bidding. You will be entertained and amazed at the process. Best of all, it's free.

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18. How do I know whether potential buyers are qualified to buy my property?
We use a proven system to get all serious bidders on a level playing field before competing for your property. When registering, bidders must meet the following criteria: (1) provide a valid form of positive ID (such as a driver’s license); (2) sign the terms & conditions agreeing to the rules of the auction; and (3) submit a bank check, guaranteed funds or cash for their initial down payment. No one may participate unless they have properly registered. Furthermore, after the property sells, the successful bidder will sign a bid acknowledgment form and a no-contingency purchase & sale agreement, and provide a second down payment representing from 10-15% of the purchase price. The bidder will agree to close within 30-45 days, and that “time is of the essence,” meaning that if they fail to comply, they have agreed in advance to forfeit their down payments.

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19. Will I sign an agreement if I decide to sell my property at auction?
Yes, you will sign a real estate listing agreement provided by Rogers Auctioneers. If you would like to review a standard copy of our agreement before signing one for your property, we will furnish one upon request.

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20. What paperwork will I need to provide if I list my property?
Rogers Auctioneers would like to have copies of any available documents pertaining to your property, such as the deed, the survey, the tax ID number, and a recent tax bill. We also have a Property Fact Sheet for you to fill out, which we will use to describe the property in our brochures and ads.

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21. Will potential bidders be able to view my property prior to the auction?
Yes, in addition to the website listing, ads and direct mail brochure, we also offer free preview by appointment. The preview is an opportunity for buyers to closely examine individual properties prior to the auction. We strongly recommend that all buyers preview properties before bidding, and that they take advantage of the opportunity to bring their contractor, home inspector or buyer’s broker with them for inspections.

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22. What can I expect on auction day?
Rogers Auctioneers will be represented by a professional team of auctioneers and bid assistants, plus all of the equipment necessary to conduct the registration process and auction. We will give a presentation on each property prior to soliciting bids. Once the auction begins, the auction team will work with the buyers to obtain the highest possible price. Immediately following the sale of the properties, contracts will be signed, down payments will be placed in escrow, and you will be on your way to closing.

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23. What is a “bid assistant”?
A bid assistant is a staff member, usually one of the auctioneers not currently selling, who watches the crowd for bids. Sometimes called “bid spotters” or “ringmen,” they are extensions of the auctioneer. It is often difficult for the auctioneer to see all the bids coming from a large crowd; the bid assistant listens to the “chant” of the auctioneer and scans the room for the current bid. If a bid assistant yells out “yup,” the auctioneer knows that he has the current bid being asked for and will proceed to ask for the next bid.

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24. Where does the bidding start?
At Rogers Auctioneers, bidding starts wherever the bidders want to start it. As a seller, it is important to remember that setting a minimum starting bid is not essential, because it is where the bidding ends that is important. The auctioneer will always try to get the bidding started at a realistic level, but if there are no bids, he will drop down to a lesser amount and repeat this process until the bidders begin bidding.

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25. What is a bid acknowledgment form?
The successful bidder is required to sign one of Rogers Auctioneers bid acknowledgment forms at the conclusion of the bidding. The form has the description of the property that he bid on, the bid, the Buyer Premium, the total with Buyer Premium and his bid number. This form verifies that the bidder agrees that he is the high bidder.

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26. When and where does the closing take place?
Rogers Auctioneers recommends 30-day closings. However, some sellers opt for 45- or 60-day closings for their auctions. The closing is usually at the seller's attorney's office or at the office of the lending institution.

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27. Is the closing different from any other real estate closing?
No, the closing is the same. The main difference between private treaty selling and the auction method is how the purchase price is achieved. Once the auction is over, your attorney and the attorney for the buyer get together and arrange for the closing in the customary manner.

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28. What happens if the high bidder fails to close?
Rogers Auctioneers immediately notifies the backup bidder in order to secure a new purchase & sale agreement.

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29. What is “high bidder's choice,” and when is it used in a real estate auction?
Properties that are similar (such as residential lots) may be sold using the high bidder's choice method. The auction is conducted to achieve a high bid, then the high bidder may choose any or all of the lots in the group, each at that high bid amount. For example, if the bidder chooses three lots, the high bid is multiplied by three. This process is repeated until all lots have been auctioned.

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30. What does “auction by the acre” mean?
Land parcels are often offered “by the acre,” which means the high bid is multiplied by the number of acres to reach the total purchase price. For example: 150 acres x $500/acre = $75,000.

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BUYING REAL ESTATE AT AUCTION

Buying real estate at auction is an informative, efficient, and often profitable endeavor. Though it is not likely you will buy a 20-room mansion in move-in condition for $10,000 (as some “get-rich-quick” marketers would have you believe), purchasing property through auction can be a very rewarding experience for those who are willing to take the time to understand the process and follow through with the necessary details.

Rogers Auctioneers holds both tax-foreclosure auctions and owner-initiated (voluntary) auctions. When deciding which type of real estate opportunity will be better for you, you need to assess your overall goals and expectations. Tax foreclosure auctions offer buyers a chance to purchase land and homes from the government, often at below-market prices. Owner-initiated auctions tend to bring prices closer to market value, but they are also very desirable properties for potential homeowners and investors.

To further assess whether purchasing real estate at auction is right for you, review the following list of Frequently Asked Questions. Once you’ve learned the basics, if you have additional questions, just give us a call.

FREQUENTLY ASKED QUESTIONS FROM BUYERS

  1. What types of properties sell at auction?
  2. Is it possible to get a bargain at auction?
  3. I have never attended a real estate auction before. What should I do?
  4. What do you mean by “due diligence”?
  5. What do you mean by “insurable title”?
  6. What are “previews”?
  7. Why do I need to register, and what is involved in the process?
  8. I have not seen a real estate auction before. Can I come to an auction just to watch?
  9. Are there different kinds of real estate auctions?
  10. What does “absolute auction” mean?
  11. What does “subject to confirmation” mean?
  12. What is a “reserve” auction?
  13. If a seller has a reserve, why don't they tell us the reserve, instead of wasting our time?
  14. What is a “stated minimum bid” auction?
  15. What is a buyer’s premium?
  16. Do I have to attend an auction to bid on a property?
  17. Do you start the bidding with the total amount of my absentee bid?
  18. Can I make an offer prior to the auction?
  19. How do I bid in the “live” auction?
  20. What is a “bid assistant”?
  21. Where does the bidding start?
  22. What is an auctioneer's “chant”?
  23. Will the Auctioneer say “Going once, going twice…”?
  24. What is a bid acknowledgment form?
  25. What do I do after I sign the bid acknowledgment?
  26. When and where does the closing take place?
  27. Is the closing different from any other real estate closing?
  28. What happens if the high bidder fails to close?
  29. What is “fair market value”?
  30. What is “high bidder's choice,” and when is it used in a real estate auction?
  31. What does “auction by the acre” mean?

 

1. What types of properties sell at auction?
All types.  Rogers Auctioneers has sold vacant land, building lots, single-family homes, multi-family homes, commercial buildings, condos, townhouses, subdivisions, and industrial buildings.

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2. Is it possible to get a bargain at auction?
Absolutely. You can get great value by buying at just one bid over the next interested party. However, keep in mind a “bargain” is like beauty — it is in the eye of the beholder. One person might say “That guy is nuts to pay $800,000 for that big chunk of ground,” while the buyer is thinking “I just got a bargain at $800,000, I'm going to subdivide it and develop it for a nice profit.” Just don't be fooled by those late-night television shows and websites promising you can make a million dollars buying property dirt cheap. It might be possible to buy a skyscraper for $1, but read the fine print — you will probably have to tear it down and remove it by the end of the week!

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3. I have never attended a real estate auction before. What should I do?
If you are interested in buying real estate at a Rogers Auctioneers auction, the first thing we recommend is to read through these Frequently Asked Questions to familiarize yourself with the terminology and procedures of real estate auctions. We also suggest you subscribe to our email list so you will receive notifications about upcoming real estate auctions.  Once you find a property of interest, follow this checklist to ensure you are fully prepared to participate: (1) Access the listing on the Upcoming Auctions page and download the property information packet; (2) Review the terms & conditions of the auction; (3) Do your due diligence on the property; (4) Preview the property; (5) Call your lender and pre-qualify; (6) Check out the values in the neighborhood and set a range of value or limit for your bidding; (7) Be prepared to bid to your limit; (8) Arrive early at the auction site to register to bid and get to know the auction staff; (9) Ask questions about properties of interest prior to bidding; (10) Get comfortable and relaxed; (11) Listen closely to the auctioneer. (12) Determine what the property is worth to you and bid confidently to obtain it. (13) Once you are successful, sign all the required documents, and your will be on your way to closing.

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4. What do you mean by “due diligence”?
Rogers Auctioneers will provide you with the information available from the seller on each property, and the seller will provide insurable title, free of adverse liens by closing. However, it is your responsibility to verify that all information is accurate and to your satisfaction. For instance, you might want to check with the local municipality to verify taxes and zoning, and get the most updated copy of the deed or tax map. You also might want to walk the property itself to examine the “lay of the land,” and have professional inspections done on any structures. Typically, you are buying the property as-is, without contingencies; therefore, you should do your homework prior to bidding.

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5. What do you mean by “insurable title”?
If a NC title insurance company will insure the property at closing, you have completed your obligation to the buyer. All Rogers Auctioneers property auction offerings are sold with good, insurable titles and no liens, judgments, mortgages or back taxes. If the title cannot be cleared, the down payment is refunded to the buyer.

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6. What are “previews”?
Previews are basically property showings of real estate to be auctioned. It is strongly recommended that all buyers preview before bidding. We also encourage you to use the opportunity to bring your contractor, home inspector or buyer’s broker with you for an inspection.

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7. Why do I need to register, and what is involved in the process?
Registration is a process of identifying yourself in our system as a potential buyer. If you want to participate in one of our auctions you will need to provide some form of positive ID such as a driver’s license. You will also need to sign the terms & conditions, and provide the stated down payment amount in guaranteed funds. You will receive a bidder packet containing your numbered bid card, copies of the terms & conditions, a bid acknowledgment form, a purchase & sale agreement, an NC agency disclosure form and the property information. Once you have registered, you will be eligible to bid on your specific property of interest.

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8. I have not seen a real estate auction before. Can I come to an auction just to watch?
Absolutely, we encourage anyone to attend and watch the bidding. You will be entertained and amazed at the process. Best of all, it's free.

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9. Are there different kinds of real estate auctions?
Yes, auctions can be "absolute," "subject to confirmation," with “reserve," or with a "stated minimum."

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10. What does “absolute auction” mean?
A property that is sold at absolute auction means that it is selling to the highest registered bidder regardless of price. There is no minimum, and the seller cannot reject the highest bid attained at the auction.

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11. What does “subject to confirmation” mean?
It means that the property is being offered to the highest bidder, subject to the seller accepting or rejecting the bid. Most Rogers Auctioneers property auctions are conducted subject to seller confirmation.

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12. What is a “reserve” auction?
It is similar to the “subject to confirmation” auction, except that there is an undisclosed reserve dollar amount set by the seller. The property cannot be sold unless the bidding meets or exceeds the reserve.

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13. If a seller has a reserve, why don't they tell us the reserve, instead of wasting our time?
Rogers Auctioneers is only interested in representing motivated sellers willing to consider that their own idea of market value may not be the same as the true market value achieved at auction. By not publicizing a reserve, the seller can be flexible if the auction price falls below it. For example, a seller sets a reserve of $100,000 on his home because his neighbor's home sold for $110,000. This reserve is his best guess of what he believes the market will bring. On the day of the auction, the seller witnesses 25 registered bidders competing to drive the bidding to $96,600, a few thousand dollars short of the reserve. The seller has purchased another home and is very motivated to sell the one he is auctioning. As a result, he accepts that the $96,600 bid is the true market value of the property and moves forward with the sale. If he had instead printed “minimum bid $100,000” on his marketing materials, no one would have come to the auction, and he would not have had the opportunity to review and accept the top offer.

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14. What is a “stated minimum bid” auction?
It is an auction at which the seller announces the minimum bid before the auction starts and will sell the property once that bid is reached or exceeded. For example, if a property “shall sell at absolute auction at or above a minimum of $41,237," if anyone bids $41,237 or more, the property will sell.

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15. What is a buyer’s premium?
A buyer’s premium is that portion of the commission paid by the buyer. It is usually a percentage of the bid price. The total sale price includes the high bid amount plus the buyer’s premium. For example, if a property sells for $100,000 and the buyer’s premium is 10%, the buyer will pay a total sale price of $110,000. At closing, the seller will receive $100,000 and Absolute Auctions will receive $10,000.

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16. Do I have to attend an auction to bid on a property?
There are several ways that you can participate without attending: (1) You may send someone to whom you have granted limited power of attorney so they may bid on your behalf (consult your attorney); (2) You may bid by utilizing an absentee bid form. This form must be include your complete registration information and be accompanied by the proper down payment, signed terms & conditions, and a signed purchase & sale agreement which includes the total bid offer; (3) You may register for phone or Internet bidding (when available), provided you agree to and abide by all of the terms and conditions. If you are interested in either phone or online bidding at a particular real estate auction, contact us at least 5 days in advance, and we will discuss the details with you.

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17. Do you start the bidding with the total amount of my absentee bid?
Yes, a real estate absentee bid will be submitted in its entirety. For example, if your absentee bid is $100,000, your bid will be submitted as $100,000.

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18. Can I make an offer prior to the auction?
Absolutely. Using our purchase & sale agreement, we will submit your written offer to the seller, and all of the auction terms and conditions will apply. We recommend that you make your best offer at this time.

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19. How do I bid in the “live” auction?
It is best to use your numbered bid card to get the attention of the Auctioneer or bid assistant. Once the Auctioneer/bid assistant has acknowledged your first bid, they will be watching for subsequent bids. If you are the successful bidder, hold up your bid card so that the staff can record your bid number on the bid acknowledgment form. If the bidding exceeds your limit, simply shake your head “no” and the auctioneer/bid assistant will know that you are done bidding.

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20. What is a “bid assistant”?
A bid assistant is a staff member, usually one of the auctioneers not currently selling, who watches the crowd for bids. Sometimes called “bid spotters” or “ringmen,” they are extensions of the auctioneer. It is often difficult for the auctioneer to see all the bids coming from a large crowd; the bid assistant listens to the “chant” of the auctioneer and scans the room for the current bid. If a bid assistant yells out “yup,” the auctioneer knows that he has the current bid being asked for and will proceed to ask for the next bid.

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21. Where does the bidding start?
At Rogers Auctioneers auctions, bidding starts wherever the bidders want to start it. As a seller, it is important to remember that setting a minimum starting bid is not essential, because it is where the bidding ends that is important. The auctioneer will always try to get the bidding started at a realistic level, but if there are no bids, he will drop down to a lesser amount and repeat this process until the bidders begin bidding.

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22. What is an auctioneer's “chant”?
The auctioneer's chant is the rhythmic talk that orchestrates the sale of each property. To start the chant, the auctioneer describes the property up for bid and suggests an opening bid. Once he has an opening bid, he will repeat what he has and ask for a higher bid. For example: “I have $50,000 who’ll bid $60,000? I have $60,000, now $70,000. Do I hear $70,000? Sold $60,000 to buyer #...”

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23. Will the Auctioneer say “Going once, going twice…”?
No, you only see that in the movies. When the active bidders are done bidding, the Auctioneer says “Sold!” and moves on to the next property. Since the average time to auction a property is 6 minutes, it is essential that bidders get involved immediately and do not wait until the bidding slows down to make their interest known. There is a saying, “You snooze, you lose,” and it especially applies to buying real estate at auction.

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24. What is a bid acknowledgment form?
The successful bidder is required to sign one of Rogers Auctioneers bid acknowledgment forms at the conclusion of the bidding. The form has the description of the property that he bid on, the bid, the Buyer Premium, the total with Buyer Premium and his bid number. This form verifies that the bidder agrees that he is the high bidder.

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25. What do I do after I sign the bid acknowledgment?
Next, you would sign copies of the purchase & sale agreement, which indicates your agreement to all of the particulars of the sale. After the P&S documents are signed, you are on your way to closing.

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26. When and where does the closing take place?
Rogers Auctioneers recommends 30-day closings. However, some sellers opt for 45- or 60-day closings for their auctions. The closing is usually at the seller's attorney's office or at the office of the lending institution.

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27. Is the closing different from any other real estate closing?
No, the closing is the same. The main difference between private treaty selling and the auction method is how the purchase price is achieved. Once the auction is over, your attorney and the attorney for the buyer get together and arrange for the closing in the customary manner.

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28. What happens if the high bidder fails to close?
Rogers Auctioneers immediately notifies the backup bidder in order to secure a new purchase & sale agreement.

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29. What is “fair market value”?
Fair market value is the price for which a property will sell on the open market between a willing buyer and a willing seller, neither being forced to buy or sell as of a specific date. Since auctions are the purest form of free enterprise, where the laws of supply and demand prevail, fair market value is the price that a property will fetch at a well-advertised auction. Other factors that come into consideration are location, age, condition, quality, size and desirability.

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30. What is “high bidder's choice,” and when is it used in a real estate auction?
Properties that are similar (such as residential lots) may be sold using the high bidder's choice method. The auction is conducted to achieve a high bid, and then the high bidder may choose any or all of the lots in the group, each at that high bid amount. For example, if the bidder chooses three lots, the high bid is multiplied by three. This process is repeated until all lots have been auctioned.

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31. What does “auction by the acre” mean?
Land parcels are often offered “by the acre,” which means the high bid is multiplied by the number of acres to reach the total purchase price. For example: 150 acres x $500/acre = $75,000.

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United Country Auction Services

United Country Auction Services

United Country, Rogers Auctioneers, Inc.
2148 Henderson Tanyard Rd, Pittsboro, NC 27312
Phone: 919.545.0412
Email: michael@rogersauction.com

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