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.  Each Sealed Bid Auction will have established Bid submittal requirements that must be met by each Bidder in order for the Bid to be considered.

2. Does the buyer need to have all cash on the day of a Live Auction?
NO, however, bidders should be prepared to bring a cashiers or certified check to the auction, the amount varying but typically 1-3% of the expected sales price. The successful bidder will then increase their deposit on the day of the auction by personal check to an amount equal to 3% of the actual purchase price.  The sum of these two checks is the buyer’s deposit and is considered to be a non-refundable deposit that is held in the Broker's trust account (or escrow company account) until closing. The balance of the total purchase price, including any closing costs, is normally required in 30 days, depending on the individual auction terms (just like a normal real estate transaction). Unlike a foreclosure auction where all cash is required on the day of the auction, our auctions mimic the standard closing time frame (i.e. 30 days). 

3. If the buyers require financing can an appraiser have access to the property after the auction during the escrow period?
YES, we can allow appraisers and other inspectors access throughout the escrow period. If the property requires termite work and the buyers want to have it done, the work can also be completed prior to closing.

4. Is the seller obligated to do repairs or any termite work?
NO, the properties sold at our auctions are sold “as is” with no contingencies. The buyer does however receive a copy of the termite report and a transfer disclosure statement filled out by the seller. Water heater bracing and smoke alarms are also required. A home warranty policy is provided at no cost. 

5. Who pays the escrow and title costs?
Depending on the terms and conditions of the auction, title insurance may be paid by either the buyer or the seller.   Escrow fees are split 50/50. 

6. Can any inspections be made to the property prior to the auction?
YES, unlike foreclosure and tax sale auctions we hold several auction previews prior to the auction. We recommend all potential buyers thoroughly inspect the properties. The properties can also be scrutinized by a home inspection company if the potential buyer wants to pay for this service. We also provide a recent termite inspection, and transfer disclosure statement in our bidder’s packages. We truly want all potential buyers to be fully informed on the condition of the property.

7. Where does the auction usually take place?
Almost all Live Auctions take place at the individual property.  Sealed Bid Auctions involve the Bidder inspection of the actual property, but the opening of bids is often performed at the Auctioneers office..

8. Is the seller required to sell the property at the auction, regardless of top bid price?
Not always.  Some auctions are deemed to be “Reserve Price Auctions” and the seller has pre-determined a minimum acceptable price. In these cases, only the seller and the auctioneer know the amount of this reserve price.

Other auctions are considered Absolute Auctions, meaning that the highest bid will be accepted for the purchase of the property, regardless of price, assuming all other criteria are met.