FREQUENTLY ASKED QUESTIONS BY POTENTIAL BUYERS

Q: What is a Real Estate Auction?
A: A real estate auction is an effective method of selling real estate.  It is an accelerated real estate marketing process that involves the public sale of any property.

Q: This is my first auction and I’m not sure how to bid?
A: Step #1: Register to bid by registering at the registration table and obtain and bidders card. By registration to bid, the buyer acknowledges that they did receive and understanding the bidders information packet and the Purchase Contract.  The bidder also acknowledges that immediately following the auction, they are prepared to execute the Purchase Contract and deposit the appropriate earnest money required to bid at the auction.

Q. How much money do I need at the auction?
A.  The Earnest Money (pursuant to the Purchase Contract) will be non-refundable and due on the date of auction in the form of a certified check or approved personal check. The balance of the purchase price shall be due at closing.

Q. What is the asking price for properties?
A.  Dutton Auction & Realty Co. auctions are conducted with the open bidding system.  There is no beginning asking price. A starting bid comes from qualified bidders who are attending the auction.

Q.  How will an auction benefit me?
A.  The real estate auction is a win proposition for everyone involved.  Buying real estate at auction allows you to experience a quick purchase and closing, eliminates lengthly negotiations, and provides the assurance the price paid was market value.

Q. Can I make an inspection of the auction properties prior to the auction?
A. Yes.  We strongly encourage you to view the property as you will be purchasing it “As Is, Where Is.” We provide multiple open house inspection dates for you to have ample time to inspection the properties.  Vacant Land Properties can be viewed anytime.

Q.  What is a buyer’s premium?
A. A buyer’s premium is an amount of money, usually a percentage added to the high bid price to determine the total auction purchase price.  If a buyer’s premium is being used, it will be in the bidders information packet.

Q.  Do I need to pre-qualify?
A.  We normally do not require any pre-qualification to bid; however if you intend to obtain bank financing, the bank will require you to qualify for their loan. The earnest money deposit you make on auction day is not contingent upon financing.

Q. When can I move into and/or start working on the property?
A.  Legally you do not own the property until the closing has taken place, and the seller has signed the deed.

Q. What happens if I cannot come up with the balance of the money for the closing?
A.  If you fail to pay the balance due by the closing date, you may forfeit your deposit.

Q. What happens if a property which I have purchase is damaged between the date of the auction and the time that I close on the property.
A.  Generally, the seller is responsible for the property until it is closed.

Q. What happens to the properties that do not sell at the auction?
A.  Generally we sell all of the properties at Dutton Auction & Realty Co.  The reason for this is our sellers are highly motivated.  If we have any properties we do not receive bids on, those properties are available for sale immediately following the auction by contacting Dutton Auction & Realty Co.

Q. What does the term “reserve” mean?
A.  Under a reserve auction the auctioneers will submit the highest and best bid to the seller. The seller has the right to accept or reject that bid. 

Q. What does the term “absolute” mean?
A.  In an absolute auction, the property will be sold to the last and highest bidder regardless of price.

Q. What does the term “Bidders Choice” mean?
A.  At some auctions we use a method of selling called “Bidders Choice”.  Bidder’s Choice work as follows: First, there is a round of bidding to determine the price of the parcel; Second, as the successful bidder, you have your choice of parcels. You may choose one parcel or as many parcels as you like.

Ex:  Assume there is a piece of property that is 100 acres in total. There are five parcels, each of which has 20 acres. The property will be sold “dollars per acre”, “bidders choice”.

The bidding commences and you are the high bidder at $ 2,000.00 per acre. Since you are first high bidder, you have your choice of any parcel. Let’s say you choose parcels #2 and #3.

Those parcels are marked off and a new round of bidding commences.  The next high bidder will have their choice of any parcel except #2 and #3.

The process continues until all parcels are sold.

Q. What if I’m a Real Estate Broker?
A. We offer a Broker Participation Fee to any licensed Real Estate Broker who properly registers a client. The bidders information packet contains a section for broker participation.

Q. How do I get put on your mailing list?
A.  Just  submit a request by clicking HERE or call our office at 330-879-5000  

Q: I’ve never been to an auction before.  This sounds confusing?
A. You are not alone most people who attend one of our auctions are there for the first time. The most important thing to do at an auction is relax, have fun and asks questions.  We strive to insure that all of our customers are fully informed and educated.