What are Real Estate Auctions:Real Estate auctions are another venue for Banks to put back homes in to the economy. Real estate auctions are all bank owned homes that have been foreclosed on. Auctions are completely free to attend and are open to the general public. You do not need an agent to attend or buy a home. You can attend and buy if you are an investor, agent, broker or even first time home buyer.Attendees can purchase these homes at more than 40% below market valueBanks want get these homes off they books. They are willing to sell them for lower cost.All homes auctioned come with a clean insurable title! Buying at auction gives the buyers the unique opportunity set their own price. You know what other bidders are willing to pay for the property so you know you are not getting a bad deal.A great benefit is also the timeframe. There are no negotiations. You bid, you buy. Done. No reason to waste your valuable time negotiating with an uncooperative seller.
Auctions cover a wide array of properties. At auction.com we offer all types of properties for every type of buyer.Note: These are mortgage loans that are secured by commercial properties. These types of assets offer a very unique opportunity to investors who are looking for cash flow without managing the real estate building.Commercial Properties: The properties are the likes of offices, retails, large multi-family units, etc… at auction.com we have properties that range from $100k to millions of dollars. If you are looking for a gas station or a small retail center, then check out these properties at auction.comLuxury Homes: These types of homes are generally not foreclosed. They are high in value and in upscale areas. Bulk Sales: These types of auctions offer buyers a portfolio of assets. Buy more and get a better price.Trustee Auctions: the trustee auctions are also known as sheriffs auctions. These auctions are traditionally held right in front of the court house steps and are all cash only. These types of auctions are for the pros who know the ins and outs of the process. However, at auction.com we are trying to take this inconvenient 100 year old process and make it more feasible and more convenient for the buyer. We only have trustee auctions in California (explain a little about the how we hold in venues rather the uncomfortable court house). These properties are pre-foreclosures and are eviction assets. They are perfect for investors who are looking for an even better discount on homes! Because these houses have just had their NOS filed and have not been thru the eviction process. Buyers can negotiate with homeowners on mortgage terms or just evict them. Look for the trustee homes on auction.com!REO Foreclosures: These are the most common types of homes that are auctioned. They range from condos, multi-family and Single Family homes. They have been foreclosed and are bank owned. These homes are suitable for all types of buyers. Agents, brokers, First Time home buyers and investors. Now lets look at the ways you buy these properties:
There are multiple ways to bid and buy properties at auction. Lets startPre-auction & Flash: These are the first ways of buying your home. Most auctions are have these two bidding periods that allow you to bid on a property before it actually goes to the main ballroom auction. If you are able to buy the property, then it will be removed from the auction. The Flash & Pre-Auction periods are both done online. Just go in and submit a bid. If it the highest bid or approved by the seller then you will get notification that the property is yours. Ballroom: If you are unable to get the property at the pre-auction or flash periods, then you can try bidding on it at the live event (if it is a ball room auction).These types of auction are held at a live venue, usually a convention center or a hotel conference room. Auctions typically start in the morning and last for several hours depending on the number of homes being auctioned. Ballroom & Webcast: similar to the ballroom auction, these auctions are held at a live venue on a set date and time. However if you are unable to physically attend the auction, you can take advantage of the webcast. Using the webcast, you can bid from the comfort of you own home simultaneously as the ballroom auction is going on.. Your bid will be reflected in on the screen at the live venue. There is always a way to buy the home of your interest. Online: These auctions do not have a ballroom venue. They function similar to the live auction with the exception of being online. You place your bid similar to eBay.
So lets see what you need to do to buy foreclosures at auction. We will go further in detail in the upcoming slides.Visit Auction.com: This is the starting point. You will find all property information needed from A-Z.Due Diligence: Perform all your due diligence including going to the OH and getting all inspections done. This is a curtail step to making a good home buying decision. Register for the auction ahead of time. Mark you calendar and take advantage of all bidding periods (flash, pre-auction & live)Get all the docs needed to attend and bid an the auction. Show up early for the live auction to allow time to check in and get familiar with the settings. Ask our staff for helpBid on your property and win.
Ok. First step 1 (visit auction.com)Visit auction.com siteOver 3000 homes auctioned nationwide!Search for your property by state, city, county, zip or even proximity to another address. If you can’t find the property currently available, make sure you set an alert so when a property comes up, you will get notified right away. We get new properties on a daily basis so make sure you save an alert so you don’t miss out!!Some auctions have a brochure available that you can print out. If there is, then the auction calendar is the place to find it. In addition to the alert, we can also notify if there are any other auctions coming up in your area. So if you are interested in more than one property types (ex: commercial & residential), then make sure you sign up for email notifications. Once you have found your property, make sure to save it so you can come back to it later!
Some helpful notes about your property. There are a couple of things to keep in mind when viewing property information.Starting Bid: this is the price that the bidding will start at. It is set much lower than the current market value to give you the chance to get the property at the lowest possible price! You decide the value of the home and what you are will to pay for it. Prev. valued: to give you a point of reference. This is the value of the home at the height of the market. Do research and compare other values to determine what your maximum bid should be. Be educated. Current bid: this is the current bid. For all online and ballroom with webcast, this current bid will show you what bid you need to beat to become the highest bidder. If you are the highest bidder at the end of the auction, they you will receive an email and a rep will contact you regarding the financials.
Once you find property that you want, you need to due your due diligence. View photos & property info. All disclosure docs are available to you free of charge. Make sure you view agent inspection report and prelim. Title report. All docs are crucial to make a good buying decision. Make sure you to go to one of the OH dates. There are typically three separate OH days for each auction. Visit the homes and do all inspections. Helpful tip (bring a flash light for dark areas & something to test the power plugs with)Some homes are only open by apt. if so call customer service or the agent on the property page to schedule a time to viewHelpful tip (always have alternatives. The more alternatives you have the better the chance that you will come out a winner on one of them). Save the properties to your profile so you can view and priorities the property by interest.
Once you have found a home you are interested in, you will need to register for the auction. We recommend that you register at least 24 hours prior to auction. This will give ample time for our customer service to verify your finances and qualify you to bid. For live auction, you will need to show several docs at the venue in order to receive a bidder card. For Online only auctions, you will need to submit a credit card for verification. Pay stubs & W9s are also required for funding verification post auction.If you need to prequalify, then you can do so on the auction registration form. Make sure you give ample time.
Now its time to prepare for the live auctions. Here is what you need. cashier’s check: CheckbookValid IDW2
There are different financing options that are available:We have preferred lenders that we have partnered with to offer you convenience and best service possible. You can take advantage of the financing by looking at the property detail page. There are also many properties that qualify HomePath financing…check the property pages. There are lenders available at the live auction day. However We highly recommend that you have your financing ready prior to going to auction.If you like, you can use your own third party lender. If you do, you will be required to provide verification docs. There are some properties that do not qualify for financing. For example, properties in the trustee auctions are by law required to be cash only. This type of financing requires proof of funds before auction. These properties are perfect for investors as they are fixer uppers with huge returns.
Now auction day. Arrival: make sure you arrive early to check in. all docs should be presented to the check-in staff at which point you will receive your bidder card and you are on your way to bid. Pickup a brochure and a update property sheet for last minute additions and removals.Get familiar with setting and the front screen. All information is displayed on the screen. Bidding happens fast. Averaging about 30 properties/ hr. Properties are auctioned based on their property IDs. Ex: TT-129 would be auctioned off number 129. When your properties comes up, just raise your bidder card and the auctioneer or ring men will acknowledge your bid. If the property does not meet the reserve and doesn’t sell, then stay around because the property might come at the end of the auction for a second round of bidding!If you win the property and the auctioneer says “Sold” or “Sold Subject to”, then the auction staff will assist you to finance table where our helpful staff will guide you every step of the way.
All homes are open three days. Check the website for OH dates and times.
Buyers set their Own Purchase PriceYou pay only as much as you want. No pressure, you just bid or not, it’s up to youPurchase your property at Fair Market ValueIt’s always comforting to have instant confirmation of value by contending bidders. You know someone else wanted the property just one bid behind yoursEliminate lengthy Negotiations and Reduce Time to PurchaseNo back and forth, when the auctioneer is finished, so is the sale. You bid, you buy, you close!
Some Insider tips:Pre-auction bids: Find a home you like, then you can submit an offer before the property goes to auction. Just look for the red “pre-auction bid” button on the property that you are interested in. Pre-auction bids are only available for specific properties. Post Auctions: If you didn’t win a property the first time, then chances are that the property will be auctioned in the post auctions. post auctions are usually a week after the auction and have all the properties that did not see in the main event. NOLA / FOLA. These auctions have properties that are nationwide. They are perfect for investors. Occupied assets:
Buying Foreclosures at Auction
BUYING FORECLOSURES AT AUCTION<br />
LISTENING TO THIS WEBINAR<br />2<br />Audio Broadcasting–Turn your computer speakers on!Audio Broadcasting allows you to hear the presentation over your computer speakers.You will see a small audio box on your screen. It controls the audio coming through your speakers. Do not close audio box.<br />Do Not Close Audio Box<br />
Lender Name</li></li></ul><li>RESEARCHING PROPERTIES<br />Opening Bid & Foreclosure Details<br />Use Email Alerts to be notified of any changes to foreclosure status, market status, and market rating (i.e. change in list price)<br />
RESEARCHING PROPERTIES<br />Market value & comps<br /><ul><li>Market value based on AVM, comparable sales, and comparable listings
Map displaying location of comparable sales & listings
List providing details for comparable sales</li></li></ul><li>RESEARCHING PROPERTIES<br />List prices & listing details (if listed)<br />
SETTING A MAXIMUM BID<br />Using your research and RealtyTrac Property Analyzer, set up different scenarios to determine your maximum bid.<br />A bid of $139,900 (asking price of home) would yield an estimated loss of more than $5,000 for this property.<br />A bid of 120,000 ($4k above the opening bid at the trustee’s sale) would yield an estimated profit of nearly $15,000.<br />
ATTENDING & BIDDING<br /><ul><li>Attend several times to observe before you attend to bid.
Watch what the regulars do and what properties they bid on.
Never go above your pre-determined maximum bid.
Be prepared but patient.</li></li></ul><li>BUYING BANK-OWNED HOMES<br />Traditional sales<br />Blah, blah, blah <br />Auction sales<br />Turn over to Auction.com at this point<br />
Bank hires auctioneers to sell these homes for discounted prices.<br />All Homes are Foreclosed Homes (REO)<br />Open to the General public (do not need agent)<br />Banks are motivated to sell the properties <br />Better to sell than to keep on their books<br />Homes Offered with clean title<br />Buyers determine the purchase price in an impartial bidding environment<br />Long negotiation periods are eliminated<br />Closing usually takes place within 30 days of the auction, if not sooner<br />15<br />REAL ESTATE AUCTIONS SNAPSHOT<br />
18<br />1<br />2<br />3<br />4<br />5<br />6<br />STEPS TO BUYING AT AUCTION<br />
1000’s of Auctioned Homes<br /> Custom searching<br /> Save a search alert<br /> Brochure Download<br /> Auction Email notification<br /> Full property information<br /> Save properties to your profile<br />19<br />1. FIND YOUR HOME<br />
20<br />1.1 UNDERSTANDING YOUR HOME<br /><ul><li>STARTING BID:The price that the bidding of the home will start at
PREVIOUSLY VALUED:The highest price the home was valued at in the past 5 years.
CURRENT BID: Current highest bid. The Bid you need to beat. </li></li></ul><li>Auction/Property information<br />View all disclosure Docs.<br />Make sure you do your Due Diligence<br />Contact Customer Service for questions<br />Properties are open on three separate dates prior to auction.<br />View homes and do all required inspections prior to auction<br />21<br />2. DUE DILIGENCE<br />
Live Ballroom<br />22<br />3. REGISTER FOR THE AUCTION<br />Online Only<br />Recommend register at least 24 hrs prior to auction.<br />Have Financial Docs (proof of funds)<br />Prequalify if needed <br /><ul><li>Register for auction as early as possible
Submit Credit Card for Verification prior to bidding.</li></li></ul><li>23<br />4. PREPARE FOR AUCTION DAY<br />
24<br />FINANCING<br />Cash Only<br />Our Lenders<br />Third Party Lenders<br />You are free to use your own lender. However, be sure that your lender is fully capable of helping you finance<br />Visit Auction.com to search <br />We have partnered with the country’s largest lenders. Take advantage by pre-qualifying. Just click on financing button on property page. <br />You are free to use your own lender. However, be sure that your lender is fully capable of helping you finance your desired home.<br />Some properties are not eligible for financing. These properties can only be purchased by Cash. Look at the property pages to see if a property is cash only.<br />
25<br />5. AUCTION DAY<br />ARRIVAL<br />BIDDING<br />WINNING<br />FINANCE<br />CLOSING<br />Bidding is <br />FAST<br />30 Properties <br />Per Hour<br />Highest <br />Bid <br />Financing Available<br />Free <br />Pre-Qualification<br />30 Day <br />Closing Period<br />Sold Subject to<br />Arrive Early<br />and Check-in<br />Properties that fall out of sale before the end of auction may be re-auctioned<br />