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Because the auction process is different from a traditional sale, TRAC encourages participants to utilize the services of a REALTOR® professional with auction experience.
Those experienced with the process know that bidders should do all of their due diligence (home inspections, lead inspections, termite inspections, appraisals, etc.) prior to bidding, as the Sales Contract will not contain any contingencies for these matters. Requests for access to properties to perform inspections are routinely honored. Bidders can conduct their final inspections on the day of the live auction, immediately prior to the sale. Doors are usually opened 1-2 hours prior to sale.
Bidders should be secure in their financial ability to settle on the purchase. If financing is necessary, educated bidders obtain pre-approval from a solid lender. If you need a lender referral, we can point you in the right direction. Utilizing the services of an experienced real estate professional goes a long way towards eliminating problems during and after the auction sale.
If you are considering attending and bidding at a TRAC live auction, become familiar with the process:
- Bidders and any representatives register at the auction site and provide evidence of any required deposit
- Walk-thru inspection of the property for all prospective bidders commences 1-2 hours (check auction details) prior to the start of the auction
- The terms and conditions of the sale are read by the auctioneer
- The auctioneer makes any announcements concerning the property and takes questions from the audience
- The auctioneer opens the auction by asking for opening bids (or announcing any pre-auction or online bids registered with us)
- Bids are accepted by the auctioneer until active bidding stops
- The auctioneer acknowledges the high bidder, reserves that bid, and recesses the auction briefly to discuss with the Seller
- The Seller may accept or reject the high bid (unless the auction is an Absolute Auction)
- The auctioneer informs the bidding audience of the Seller's instructions
- The auctioneer asks for final bids from any and all bidders
- The auction becomes final if and when the auctioneer says "sold"
- The parties execute the sales contract and other documents evidencing and relating to the sale
After auction day, the purchaser typically has thirty (30) days to proceed to settlement. For commercial properties this window may be increased to sixty (60) days or more -- check the auction terms specific to your property. Since all of the purchaser's due diligence is completed prior to auction day, this allows sufficient time for the title company to assemble all necessary information, prepare closing documents and close the sale. Should any issues arise which prevent the seller from conveying marketable title (for example, an intervening federal tax lien creates a shortfall between auction sale proceeds and payoffs), the purchaser should be entitled to a return of the deposit.
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