Frequently Asked Questions, Micoley & Company Auctions

Frequently Asked Questions

Q. What is a Real Estate Auction?

A. Purchasing real estate at an auction is a very simple process. Real estate auctions simplify and speed up the process for both buyers and sellers. Auctions are a highly effective way to buy and sell real estate in an accelerated environment with advantages for both the buyer and seller. In an auction the seller has the opportunity to sell their property much faster than traditional real estate allows and the buyer has the opportunity to purchase at a lower price.

Q. What do I need prior to auction?

A. It is impartant that you are prepared prior to the auction; you are encouraged to inspect the property before bidding begins. The inspection usually takes place in the hour before bidding begins or by appointment prior to auction day. When registering for a real estate auction it is very important to arrive 30 minuets to an hour before the auction begins. During this time we encourage perspective bidders to take time to inspect the property.

Micoley & Company Auctions also encourages interested bidders to seek out additional information about the property. On the right hand side of every individual auction page on the Micoley & Company Auctions website, there is a button to download a bid packet. The bid packet contains more details about the property, such as, the property legal description, the approved Purchas and Sale Agreement, preliminary title commitment, the previous year tax statement, detailed property description & list of inclusions, property zoning information, and other various disclosures.

Q. How do you bid at an auction?

A. Step 1. Register to bid by filling out a bidder card at the registration table. By registering to bid, the buyer acknowledges that they have reviewed and understand the information in the bid packet and the Contract of Sale agreement. The bidder also acknowledges that immediately following the auction, they are prepared to execute the Contract of Sale agreement and pay the appropriate deposit at that time in a form that has previously been deemed acceptable to the Auction Company.

Step 2. Determine how much you are willing to pay for a piece of property. Since your needs and desires are unique, your evaluation of the property will be different from anyone else's as well as the amount you are willing to pay.

Step 3. As the auctioneer progresses in his/her call for bids, simply raise your hand when you want to bid. If you're not sure if you're in or out, simply raise your hand again and the auctioneer will keep you in the bidding. He will not let you bid against yourself. The auction will be conducted under the total control of the auctioneer.

Step 4. If you have any questions or need any assistance just motion for one of the Auction Team members. These individuals are there to help you understand the process completely.

Q. Do I need to pre-qualify?

A. No. We normally do not require pre-qualification to bid; however, if you intend to obtain bank financing, the bank will require you to qualify for their loan. The deposit you make on auction day is not contingent upon financing. Phone biding is available to buyers who have properly registered with our company.

Q. Can I purchase prior to auction?

A. Yes! In fact, 80% of our properties sell prior to auction. One average, our properties sell in the first 75 days they are on the market.

Q. Can you sell my property even if you don’t know my local market?

A. Our model works in every part of the country because it's not geographically driven, its economy driven. The market is the same everywhere and we have been successfully selling properties in multiple states.

Q. What is a buyer's premium?

A. A buyer’s premium is a percentage that is added to the bid price to determine the total purchase price. In our auctions, there will be a buyer's premium added to the successful bid amount to create the total purchase price; the buyer's premium amounts can be found in the bidder's packets, as they vary from property to property. The earnest money (pursuant to the Contract of Sale), will be non-refundable (except otherwise provided in the Contact of Sale) and due on the date of auction in the form of personal or business check. The balance of the contract purchase price shall be due at closing.

Q. What is earnest money?

A. Earnest money is also known as a 'good-faith money deposit'. It is a buyer's way of telling the seller they are serious about the purchase. The earnest money amount is 5% of the minimum bid, not the purchase price. This amount is due at the time the offer is written and is non-refundable. Earnest money is refundable if your offer is not accepted. (Cashier check payable to Micoley & Company)

Q. What are the benefits of an auction?

A. Real estate auctions are a win-win-win for everyone involved. In an auction both the buyer and seller have control and benefit from the process. Auctions take the seller out of the negotiation process as well as many other benefits.

Serious buyers come prepared to buy
Accelerated sales and marketing process is implemented
Much shorter timeline than traditional real estate listings
Increased property exposure

In addition to the seller benefitting, the buyer benefits from a real estate auction as well.

The buyer will experience a great investment opportunity by purchasing at fair market value
Buyers determine the price they will pay
Buyers receive valuable information from bid packets
No long negotiation periods

Q. What does it mean when property is sold "As-Is, Where-Is"?

A. Prior to auction the bidder acknowledges that the property is being sold "As-Is, Where-Is". This condition means the seller will not be making any changes or repairs to the property and it will be sold in its current condition. This does not mean that the seller can disclose any information from the buyer about the property. However, the buyer is solely responsible to inspect the property prior to purchase.

Q. What does "Post Auction" mean?

A. The property went to auction and did not sell. It will continue to be treated as an auction property for the next 60 days.

Q. How will my property be marketed?

A. At Micoley & Company Auctions we have a very unique marketing plan for every auction property. Our agents are very experienced and take the time to learn specifics about the demographics of each property. In addition, our marketing team takes an unconventional approach to ensure your property sells at auction or before. Our staff takes the time to list your property on appropriate MLS so that your property is viewed by the right audience. At Micoley & Company Auctions we customize an advertising and marketing plan that utilizes print advertising, property signs, facebook, twitter, overstock, ebay, newspapers, home guides, geo-targeting and many other web listings and MLS. We pay for marketing up front but exact methods are project specific and proprietary.

Q. What types of property does this marketing strategy work for?

A. It can work for any type of property but we have seen it work particularly well for traditional residential and small commercial real estate properties. We have also found success with vacant land and development/commercial lots. More recently Micoley & Company Auctions has ventured into personal property because of the success of our unique marketing strategy and enthusiastic agents.

Q. What if I'm a broker?

A. We offer a Broker Participation Fee to any licensed Real Estate Broker who properly registers a client. Registration forms must be completed at least 48 hours prior to the auction. Call 888-662-1020 to request a Broker Participation Form.

Q. What makes Micoley & Company Auctions different from other auction companies?

A. We take advantage of traditional real estate sales channels and auction marketing methods simultaneously. Our goal is truly to use the auction even to draw attention to the property, but our goal is to generate and sell the property prior to the auction event. We also do not charge upfront fees. We don't get paid until we succeed for you.

Still have questions? Feel free to contact us and we're happy to answer your question.