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Bidding at a live auction is easy. A prepared bidder is most likely a winning bidder. Here are easy-to-follow steps and a few definitions to help you be successful when bidding at live auctions:
TO QUALIFY TO BID:
1. Bring your driver’s license.
2. If required, bring a cashier's check made out in the required amount to yourself. If you are not the winning bidder you may redeposit your money, IF however, you are the winning bidder you will endorse the check and use it as part or all of your deposit.
3. Bring a personal or business check on which to write the balance of the auction day down payment, IF necessary.
4. Bring any additional financial instruments that you may need. Bank letter of credit or pre-qualification letter. Check with the terms & conditions associated with the particular auction to determine exactly what will be required of the winning bidder, found in the PIP.
TO BE A CONFIDENT BIDDER:
1. Be knowledgeable. Review the auction terms and conditions and download and review the Property Information Packet (PIP) provided on the website for the particular property you have interest.
2. Visit the property prior to the auction.
3. If there are multiple properties in an auction, rank your choices before the auction. Knowing your first, second and third choice of properties is very helpful. Bring your list with you so you can make an adjustment quickly if your first selection is sold.
4. Know your bidding range before you get to the auction.
5. Talk with your lender before the auction. Get Pre-Qualified for the amount you think you will bid. Properties are sold As is, Where is for cash, and NOT contingent upon financing.
6. Don’t let the crowd affect your focus. No matter how big or small the crowd is or what other bidders may say, know the facts, your situation, and let that be your guide.
7. Ask questions before the auction, we are here to help. Get the information you need to bid with confidence.
Bring any notes, PIP or pre-registration form with to the auction.
TO BE A WINNING BIDDER:
Raise your hand and make eye contact with the auctioneer or get the attention of one of the bid assistants.
The single most important factor in being a successful bidder is to remember to raise your hand, or shout out your bid! The day after the auction we receives many calls from shy bidders who wish they had bid and want to be put on a list in case the property does not close.
SPECIAL BIDDING PROCEDURES:
(If the auctioneer plans to utilize special bidding procedures, that information and the special instructions will be provided on the website and/or at the auction)
HIGH BIDDERS CHOICE:
Sometimes, when there are a number of same or similar properties in an auction, the properties can be offered by “ high bidder’s choice.” The auction Terms and Conditions will state if the properties will be sold by “ high bidder’s choice.”
• Rather than only one property being offered on the auction block, all the properties are on the auction block at the same time.
• The auctioneer begins oral bidding on the “first round “of bidding.
• In the “first round,” all bidders are bidding on the property they wish to purchase.
• The high bidder on the “first round” of bidding has their choice of the property(ies) they want at the high bid price. Therefore, they may select one or as many as all of the properties at their high bid price. For example; If the high bid on say, 5 parcels of ground is $5,000 per acre, the high bidder has her choice of parcels at that price. She may choose to take one, two or all the parcels at the price of $5,000 per acre. Bids will be entertained again on the remaining parcels in a similar fashion until all the parcels are sold.
MULTI-PAR FORMAT
Sometimes there are a large number of parcels with a particular auction. Rather than the auctioneer trying to determine how the bidders would like to group the parcels (which we almost always get wrong), we allow the bidders to group the parcels as they like. This process does take more time and does require more planning and thought by the potential buyer. However, the advantage is that the bidder gets to determine which parcels to bid upon and is allowed to bid until they have either become the high bidder or surpassed their bid limit. Remember, with a multi-par format, the parcel you want may become grouped with another parcel, effectively putting you out of the bidding, but don't leave until the auctioneer declares the winners as you may very well become the winning bidder of "your" parcel by the actions of another bidder.
ABSOLUTE:
When a property is offered “Absolute” it means that the property will sell to the highest regardless of what the high bid is. A couple of things to remember with an absolute auction; 1) a bid must be entered and accepted by the auctioneer to be a valid bid, 2) IF an auction is not advertised as an absolute auction, it is implied that the property will sell with a non disclosed reserve. In other words all auctions are reserve auctions if not specifically advertised as absolute.
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