The top 10 most frequently asked questions and answers
The Low Unique Bid Real Estate Auction
1. How does the home get paid for?
By using a low bid format we can attract thousands of bidders into each home auction. A service fee is charged for the use of Home Auction Service Pack to every bidder in every home auction. These fees collected pay for the cost of the home and the services provided. Service fees can vary per home auction but generally range between $200-$250.
2. When and how do I pay the service fee?
You can Sign Up and Place a Bid Here. On the registration form there is a link to open for the Home Auction Service Pack. Once you have reviewed and accepted that information you can place a single sealed bid. You will then be redirected to Pay Pal's secure server to remit payment. You can use your Pay Pal account or a major credit card to pay for the use of the home auction service pack.
3. Where do the all the service fees go?
Every home auction is unique in nature and accounting. Typically, the homes entering into the auction are overleveraged with excessive and growing debt, liens and judgments. The majority of the fees are paid to the seller in consideration of a full pay off and a satisfaction of the note and mortgage. These properties also receive a five star home inspection. Each and every known defect is either repaired or escrowed for at closing for the new buyer. Each property receives a photo shoot, survey, pest inspection, home inspection, preliminary title and exam, seller's disclosure, appraisal and a 5 year deferred maintenance schedule. The additional closing costs covered for the new buyer are recording fees, Real Estate taxes, homeowner's insurance, pool care, lawn care, pest control contract and a home warranty for the first year. The home auction service fees also pay for the welcome package, real estate, legal, web design, marketing, accounting and special services required to open and close an auction and perpetuate the global expansion of the same. In addition upon completion of the Home Auction the Seller is able to Grant an Organization $1Million Dollars to further their cause.
Every home auction is unique in nature and accounting. Typically, the homes entering into the auction are overleveraged with excessive and growing debt, liens and judgments. The majority of the fees are paid to the seller in consideration of a full pay off and a satisfaction of the note and mortgage. These properties also receive a five star home inspection. Each and every known defect is either repaired or escrowed for at closing for the new buyer. Each property receives a photo shoot, survey, pest inspection, home inspection, preliminary title and exam, seller's disclosure, appraisal and a 5 year deferred maintenance schedule. The additional closing costs covered for the new buyer are recording fees, Real Estate taxes, homeowner's insurance, pool care, lawn care, pest control contract and a home warranty for the first year. The home auction service fees also pay for the welcome package, real estate, legal, web design, marketing, accounting and special services required to open and close an auction and perpetuate the global expansion of the same. In addition upon completion of the Home Auction the Seller is able to Grant an Organization $1Million Dollars to further their cause.
4. How does the bidding process work?
You can place an initial sealed bid in the entry form here. Bids are placed in one penny increments between one penny .01 and five hundred dollars 500.00. Example 33.33 (thirty three dollars and thirty three cents). Do not bid more than you can afford, you will be required to place your entire cash bid amount into escrow with our attorneys within 24-48 hours of notification if you are the successful bidder in the auction. All transactions are cash only. There is a service fee of $200-$250 for the use of the home auction service pack in each auction. Once all the bids are validated, the auction closes to the public, the bids are tallied and the successful bidder is notified to proceed with their purchase. The bidder that has placed the lowest bid in the auction that is unmatched or unique in value can purchase the home for that amount.
5. How many people are in each auction?
The number of required bids varies in every auction. Because you can place more than one bid by using a unique email and user ID for each bid value, the number of "people" required is not relevant. Each auction has a "bid reserve" which is the essential number of bids needed to meet the financial requirements of the home auction and the services provided. You can determine the number of bids required in each auction by visiting each property's home page.
6. When does the auction close?
The auction closes when the property closes. However the auction does "close to the public" once we have received payment from the required number of bids (the bid reserve is met). Bids and payments are electronically tallied over the course of 3-5 business days and the auction results are posted online at MarcusRealEstate.com. The successful bidder is then notified and has 24-48hrs hrs to execute a contract for purchase for that amount and place their entire cash bid into escrow with our attorneys. Depending on the Real Estate Auction, the successful bidder then has 30-60 days to perform any and all further inspections and close on the subject property. If the bidder (now the new buyer) fails to do so, it is construed as default and the second lowest unique bidder is then notified to proceed with the purchase. For cash land trust auctions, the successful bidder has the same 24-48 hours to place their entire cash bid amount into escrow with our attorneys, 30 days to select their new Florida home, perform inspections and close. The home auction will be placed in a "pending" status until the lowest unique bidder actually closes on the property.
7. What is the lowest unique bid?
Two criterion: 1. A bid amount that is unmatched by any other bidder in the auction making it "unique" in value and 2. the lowest bid amount placed within the auction. So for example if you place a bid for one penny and another bidder does the same, one penny is the lowest bid amount in the auction but no longer unique because it was duplicated. Duplicate bids cancel themselves out and similar to standard high bid auctions bid values increase during the course of the auction. See sample auction results. In the Event there is no Single Unique Bid in an Auction, the Criterion would be 1. The Lowest Bid Value 2. That the Least Amount of Bidders Placed and 3. The First Bidder to have Placed that Bid Amount.
8. What are my expenses to purchase the home?
All standard Real Estate closing costs are covered for the new buyer. Additional Buyer legal representation, phone, fax and further ancillary expenses (if any) will be the responsibility of the new buyer. We will even pay for your trip here to close on your new home.
9. How will I know if I am the successful bidder?
You will be notified by phone and email. That's why it is important to give accurate information when you submit your final registration information. All auction results are also posted online at MarcusRealEstate.com and each closed auction with buyer and seller testimonials will receive its own column in our newsletter. We will find you as long as we have accurate information...we are pretty excited about that part.
10. How long does it take to close an auction?
It depends on how many bids are required and the level of marketing a property is receiving. The Real Estate Auction will Close Quicker with a Large Exposure to Qualified Bidders. Remember also, the auction will not technically and finally close until the successful bidder closes on the subject property which can take an additional 30-60 days. Overall, the more our bidders share this home auction with their friends and family and the more we grow, the quicker we can close auctions, the sooner we can reduce the service fees to our members and stimulate the economy.
