FREQUENTLY ASKED QUESTIONS

Q:  What are the advantages of buying property at auction?
A:  Auctions can offer great deals.  Often buyers can find discounted homes that, if sold traditionally by owner-occupants, would be out of their price range.

Q:  Does property ever sell before the auction?
A:  Properties can sell before the auction if an acceptable offer is made to the seller.

Q:  Does the highest bid automatically get the property?
A:  Not necessarily because the seller reserves the right to reject all offers. Also, the buyer must meet all the terms and conditions, not just offer the best price (Quick reminder: incomplete offers won’t be considered).

Q:  If my offer is accepted, may I pay upfront costs and fees with cash or a personal check?
A:  No. All fees must be paid by cashier’s check or certified funds checks.

Q:  Is there a buyer’s premium?
A:  Yes. A buyer’s premium of $750 or 5 percent of the accepted bid price, whichever is greater, will be paid to BankOwnedBids.com at closing.

Q:  Do I have to pay commission?
A:  No, when the sale closes the seller pays the commission to the listing and Buyer's agent.

Q:  May I place a bid before inspecting the property, or place a bid that is contingent on inspection or funding?
A: There are no contingencies for any reason. By bidding, you are stating that you have completed your due diligence.

Q:  How do I get in to see the property?
A:  You can contact the listing agent for an appointment. Agent information will be on the site's property details page.

Q:  What is the property's condition?
A:  Each property is different. We will list all of the information we have on the website, but it’s up to you to have the property inspected. (Please note that any house built before 1978 may have lead-based paint)

Q:  When does bidding end?
A:  Submit your highest and best offer by 5 p.m. EDT.

Q:  What happens if my bid is rejected?
A:  You will be notified that you were not the high bidder, but that your bid will be held as a backup offer should the high bid be rejected by the Seller.

Q:  What happens if my bid is accepted?
A:  You will be notified by e-mail. You will have two business days to deliver to BankOwnedBids.com the signed purchase agreement, disclosures, proof of funds or bank preapproval, and earnest money deposit.

Q:  What is the earnest money deposit?
A:  The earnest money deposit is made by the buyer to show the seller that the offer was made in good faith.
(You can find more details on our Terms and Conditions page)

Q:  How much earnest money is required?
A:  5 percent of the bid amount, or $2500, whichever is greater. For bids $2500 or less, the EMD would be the full offer amount.

Q:  What happens if I don’t meet the deadline?
A:  If the necessary documents and cashier's checks aren't submitted by the deadline, the offer is considered null and void. The seller will then consider the next-highest bid. If that bid is accepted, the new buyer will have two business days to submit the required documents and checks.

Q:  What happens if there is a tie bid?
A:  The seller will then decide which offer they want to accept.

Q:  Do I have to worry about title and back taxes, liens against the property, or the water bill?
A:  No, you won’t be held responsible for any taxes or liens from before you owned the property.

Q:  What do the closing costs include?
A:  This depends on the seller. Buyers are urged to consult their lender and the closing company for an estimate. The seller will pay commission to both the buyer and seller’s agent. (Property tax is generally pro-rated to the date of closing).

Q:  How soon can I expect to close on the property?
A:  Usually within 30 days, but cash sales can go even faster!

Q:  May I bid on more than one property?
A:  Of course, but each auction is considered a different transaction so you’ll have to submit the proper paperwork for each one.

Q:  What if I change my mind and the sale doesn’t close?
A:  If the offer is approved and the buyer fails to close, the buyer will lose the EMD to the seller and be charged a $375 default fee by BankOwnedBids.com

Q:  Can I wait until the last minute to bid on the property? (sniping?)
A:  You can, however due to high traffic volumes your bid may not get through in time. Also, BankOwnedBids.com has a special tool that extends the auction for an additional 10 minutes when a bid is placed close to the deadline. The auction will end when there has been no activity for five minutes.  Also, be sure to refresh your browser towards the end of the auction as more bids may come in at that time.

Q:  How do I get the corporate disclosures and addendums that must accompany my bid?
A:  Contact the listing agent and request that they be emailed or faxed to you.

Q:  Is there someone I can speak with if I have additional questions about the auction process?
A:  Of course! You can call BankOwnedBids.com at (877) 660-4727, and someone in our call center will be happy to answer your questions.