Process for Buying at Auctions

Common Types of Auctions
There are two major categories of auctions being offered by Troop Home Auctions, Live Auctions and Sealed Bid Auctions.  Live Auctions are just what the name implies.  The property is generally sold through a competitive bidding process with the highest bidder at the Auction being awarded the purchase contract at the Auction site.  There is often a Minimum Opening Bid established to get the bidding started. 

A Sealed Bid Auction differs in that the competitive bidding process occurs through the submission of Sealed Bids which are due at a specified date, time and location.  Unlike a Live Auction, Bidders are unaware of what price their competition is offering for the property.  It is essentially a one-time opportunity to submit your best offer.

With either a Live Auction or Sealed Bid Auction, two distinctive bid acceptance criteria may exist.  There is a Reserve Price Auction where the Seller has established an undisclosed minimum price for the property and need not sell the property if that price is not met.  There is also an Absolute Auction where the highest bid will be accepted for the purchase of the property, regardless of price, assuming all other criteria are met.

Getting Ready
The 30 days leading up to the auction is the time for you to get questions answered, attend open houses of the homes you are interested in, and determine what you can afford to spend. Prospective Bidders need to conduct all their property due diligence tasks prior to the day of the auction and fully educate themselves as to the condition of the property.   The actual Live Auction or submission of a Sealed Bid is simply the time to offer the price you are willing to pay for those properties.

Registration for Buyers for a Live Auction
For a Live Auction, prior to auction day, all prospective buyers (and their real estate agent if applicable) must pre-register for the auction and meet minimum criteria in order to be approved to actively bid at the auction.  This may include pre-approval for financing and verification of liquid funds to close escrow.  On auction day, prospective, approved buyers will receive a bidder number when they check in by showing a valid driver's license and delivering a certified/cashier’s check for a predetermined amount that will equal 1-3% of the expected purchase price.  Pre-registration (and the pre-qualification process) begins as soon as the property is announced as available for auction.

Check-in at the auction on auction day usually begins from 30 minutes to two hours before the scheduled auction time. There is no fee to register at the auction and high bidders may use certified, cashiers or personal checks for down payment. It is critical that you refer to the specific terms and conditions for the auction that is of interest to you to ensure that you understand the process and your responsibilities as a bidder or successful buyer.  You can also get all last minute questions answered and tour the home one final time if you wish.

Submitting an Offer for a Sealed Bid Auction
For a Sealed Bid Auction, no pre-registration of Buyers is generally required.  However, all Bidders must submit all required information and executed contracts with their Bid submittal.  This will typically include a signed Residential Purchase Agreement (and applicable Addendums), a signed Buyers Advisory, and verification of financing and liquid funds to close escrow.  All Bids must be submitted on or before the published due-date and time to the appropriate recipient.

Registration for Real Estate Agents, Brokers or Other Third Parties Representing Buyers
Real estate agents, brokers and other legally empowered buyer representatives are required to pre-register and pre-qualify their buyers in accordance with the terms and conditions of each auction.  This will include completion of a registration form.  Contact Troop Home Auctions for the appropriate forms and more information.

The Auction Team (applies to Live Auction Only)
Assisting the auctioneer will be ring staff, to make sure anyone trying to bid is recognized and that all bids are recorded with the auctioneer. Ring staff may also assist with questions during the auction, including asking the auctioneer to pause if necessary. It is a myth that bids can be made accidentally ... by scratching one's nose and the like. If you did not intend to bid, simply inform one of the ring staff or the auctioneer and the mistake will be corrected. Any tie bids or other issues regarding who has the high bid are always resolved by the auctioneer, who has complete and final authority.

“SOLD!” (applies to Live Auction Only)
From the first bid, things move quickly, with bidders offering their bids up to the price they are willing to pay for the property. The auctioneer can and will say "sold" as soon as he or she determines that the final bid has been made. It is not necessary, nor customary, for the auctioneer to slowly announce, "Going once, going twice, etc." He or she simply decides the bidding has stopped and announces, "sold." If the auction is for a single property such as a home, this concludes the auction and the purchaser simply executes the contract of sale and makes the required payment.