Attention Buyers!

HOW an AUCTION WORKS

  • Buying at auction in the Louisville area can be fun – You have the opportunity to buy at your price.
  • By applying self-discipline, and a discerning eye, auction buyers have the ability to purchase wonderful art, antiques, household goods, tools, vehicles and equipment at fair prices and save a great deal of money.
  • You can buy home furnishings, wedding presents and many unusual, interesting and useful items, while attending an entertaining event and visiting with friends and neighbors, at the same time.
  • It is always interesting to see the market value of items established in active bidding.
  • Buyer’s Premium – This is an amount added to the winning bid to determine the selling price.  It helps pay the marketing costs.  Normally, it is a percentage of the bid.

Answers, for beginners, to questions concerning the auction method.

This is my first auction and I’m not sure how to bid.

Attention auction buyersStep1.  Register to bid by filling out a bidder card at the registration table

Step 2. Determine how much you are willing to pay for an item or piece of property.  Since your needs and desires are unique, your evaluation of the property will be different from anyone else’s.

Step 3. As the auctioneer progresses in his call for bids, simply raise your hand when you to bid.  If you’re not sure if you’re in or out, raise your hand again and the auctioneer will keep you in.  He will not let you bid against yourself.

Step 4. If you have any questions, motion for one of the Auction Professionals of Kentucky, LLC Team members.  These “ringmen” (or women) are here to help you understand the process completely.

What does the term “Reserve” mean?

Under a reserve auction, the auctioneer will submit the highest and best bid to the seller.  The seller has the right to accept or reject that bid.

What does the term “Absolute” mean?

In an absolute auction, the property will be sold to the highest bidder regardless of price.

Do I need to pre-qualify?

No.  We normally do not require any pre-qualification.  However, if you intend to obtain bank financing, the bank will require you to qualify for their loan.  Because we close real estate auctions within 30 days of the auction date, you should make sure your financing is in order before you bid.  We require a 15% down payment from the successful bidder and the deposit you make on auction day is not contingent upon financing.  That means if you do not secure financing, you will forfeit your deposit.

What is a Buyer’s Premium?

A buyer’s premium is a percentage that is added to the bid price to determine the total purchase price.  In Auction Professionals of Kentucky, LLC auctions there will be a 10% buyer’s premium added to the successful bid amount to create the total purchase price.  The Earnest Money, or down payment, (pursuant to the Contract of Sale), will be non-refundable (except as otherwise provided in the Contract of Sale) and due on the date of auction, in the form of a good personal or business check, secured by the buyer’s personal note or a deed and insurable title on real estate.  The balance of the contract purchase price shall be due at closing:

For Example:

Bid Amount   $500,000
+Buyer’s Premium     $  50,000
Contract Purchase Price  $550,00
-15% Deposit or Earnest Money   $  82,500
Balance Due at Closing  $467,500

The most important thing to do at an auction is relax and have fun.  If you have questions, ask!  We strive to insure that all customers are fully informed and educated.

And remember…

YOU’RE ONLY GOING TO PAY ONE BID MORE THAN SOMEONE ELSE WAS WILLING TO PAY.

What You Should Expect at an Auction

  • Licensed professionals will guide you through each step of the process.
  • You may attend an auction without bidding, observe the market in action and learn about the auction process.
  • An auction is a fast-paced event.  Expect to have fun!
  • Absolute auction means the property will sell, without exception, regardless of price.
  • Reserve auction means the property will be sold, to the highest bidder, subject to confirmation by the seller.

Bargain hunters abound – many investors purchase property at auction because they find the most lucrative deals.

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