Buying real estate and equipment at auction is easy. The following categories will provide a quick overview to help educate you about the auction process:
1. Do your homework.
The 30 days leading up to the auction is the time to find answers to your questions, attend open houses, and determine what type of budget you have. The actual auction is simply the time to offer the price you are willing to pay for your properties of interest.
A real estate auction is the sale of real property in “As-Is” condition for the fair market value, using the competitive bidding process. All auction properties are sold “As-Is” meaning the properties are selling without warranties as to its condition and/or fitness of the properties for a particular use. You are solely responsible for examining and evaluating the properties for your own protection. Contracts are not contingent on buyer or lender inspections. You should make all desired inspections during the available viewing times.
Although some consumers feel the term “As-Is” is a red flag, the opposite is generally the case in most real estate auctions. Entz Auction & Realty will provide bidders with vital information on the property/equipment, which may include: maps, easements, tax information, detailed description and other important information. This information should give you the confidence to participate in an “As-Is” auction. Ultimately, it is your responsibility to do your own inspections and due diligence prior to bidding.
When selling equipment at auction, we try to obtain as much information as possible to help you make your purchasing decision. Though we cannot make any guarantees, we take the information from sources we deem to be reliable. If an item is selling with some form of warranty, it will be announced. Otherwise, it will sell “As-Is”.
There will be a designated time prior to the auction when you can register for a bidder number/buyer number. We encourage you to register as soon as you arrive. To register, you will be asked a few questions and given a bidder number. Familiarizing yourself with the terms and conditions of the auction will ensure registration on the day of the auction will be quick and trouble-free. We encourage you to contact us at any time prior to the auction to answer questions. We can be reached at 405-663-2200.
3. Before the auction.
The auction begins promptly at the appointed time with pre-auction announcements summarizing the terms of sale, the methods of bidding, and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the Auctioneer answering any final questions.
4. Working with the Bidder Assistant.
The Bidder Assistants, often known as a ringmen, are auction staff members who are positioned among the attendees at the auction. They are there to assist the auctioneer, spot your bid and assist you with information to help you in your buying decision.
You may place a bid by raising your bidder card. It is a myth that bids can be made accidentally by scratching your nose or similar accidental movement. If you did not intend to bid, simply inform one of the Bidder Assistants or the Auctioneer and the mistake will be corrected. Any tie bids or other issues regarding who has the high bid are always resolved by the Auctioneer, who has complete and final authority.
From the first bid, things move quickly with bidders offering their bids up to the price they are willing to pay. It is not necessary, nor customary, for the Auctioneer to slowly announce, “Going once, going twice, etc.” When it is determined that the final bid has been made, the Auctioneer will identify and congratulate the high bidder. The high bidder simply executes the Real Estate Purchase Agreement and makes the required earnest money deposit. In a “Subject to Confirmation” auction, the Seller retains the right to accept or reject the high bid within a specified time after the auction.
6. Real Estate Closings.
Closing on the property typically takes place within 30-45 days from the date of the auction. Closing is not contingent on financing, appraisals, or inspections. Whether it is your first time to purchase real estate or not, we are here to answer your questions.