Home Buying in 92129>Question Details

 Carlos, Real Estate Pro in San Diego, CA

If I decide to bid on an acution, do I have to be represented by any of your agent? What is the minimum down payment and deposit to bid? Thanks.

Asked by Carlos, San Diego, CA Mon Jan 10, 2011

Help the community by answering this question:


Janet McCarthy’s answer
No, you don't need an agent. However, it will help you to have an agent who can research the auction homes and give you the history and comps information. At the auction they work hard to excite buyers in to bidding up the process. They actually hand out bowls of candy and have people running up and down the aisles. Please be aware that you pay a fee to buy at auction which increases the sales price, so read the find print.
Also, from my experience the auction prices are posted lower than market price but end up around the same amount.
If you want a really good deal you need to get connect with a Realtor, get pre-approved and be prepared when the right house comes on the market. The inventory at the auction is usually houses that didn't sell the "regular" way so they have defects, challenges and problems.
Janet McCarthy
Connect Realty
0 votes Thank Flag Link Thu Aug 16, 2012
Hello Carlos,

You can come with your agent to the auction (so that you know the right prices for homes you are bidding on, and so you stop when it's time :) when things get too exciting).
But, you don't have to.

Many auction companies charge 5% on top of your price on their services, and the agent gets paid by them - usually 2%.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Tue May 8, 2012
You do not have to be represented by an agent from the auction company. It is to your benefit however to have an agent who is familiar with auctions and online auctions if you are participating in one. Our company trains real estate agents in the auction process and you can find one at our website at http://www.experthomeauction.com. With our auction, you pay nothing until you win the auction as a rule. You put down your earnest deposit money along with your purchase agreement and any auction documents within 48 hours of winning the auction. You do, however, need to provide a preapproval letter from your lender or proof of funds prior to winning the auction.
0 votes Thank Flag Link Wed Jan 12, 2011
The short answer is NO if you have not signed a representation agreement, but it is not a good answer if you are not experienced in the process. Go to an auction and spend some time. If you have an agent, they can be very helpful...but it will cost you something. Auctions work very differently. Spend some time going to a and watching them. The court house auction is different than some of the ones that occur at the property or online.

Let me know if I can help you in any way!

Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)

Prudential California Realty
Direct Phone: 760-757-3468
800-975-7481 x 111
Fax: 760-946-7894
License # 01341483

Blog: http://JoanWilsonRealtor.com

Find Your Dream Home:
0 votes Thank Flag Link Mon Jan 10, 2011
The short answer is yes you can do it yourself.
The correct action is to let a professional to represent you. When you are buying a property the seller will pay the commissions. This is regardless of if you are represented by a real estate professional or not. The net cost will be the same to you.
Now the question is this. Do you mind having professional help for free?
0 votes Thank Flag Link Mon Jan 10, 2011
Are you talking about a foreclosure auction (Trustee Sale) at the courthouse, or an auction put on by a private company?

Trustee Sale - No down payment or deposit, you need the full pruchase price in the form of a cashier's check (or cash, but please don't)

Private Auction - Buyer can secure financing, each company is different as far as down payment or other fees, and agents are usually paid if they're registered. Check their web sites, they'll tell you exactly what you need to accompany a buyer.

A buyer doesn't have to be accompanied by an agent at either type of auction.
0 votes Thank Flag Link Mon Jan 10, 2011
Hi Carlos,

It depends on the type of auction. Please know that auctions are filled with savvy investors who do this for a living. Representation by an agent is not required.

We would recommend that you find someone with experience and go with them to watch a few times to have a better understanding of what happens and how they work.

Best to you,

Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
0 votes Thank Flag Link Mon Jan 10, 2011

If you're talking about an auction on the courthouse steps you don't need an agent, but if you want representation you will have to pay them for it. Fees are negotiable, and I would suggest you deal with an agent/broker who knows about these kinds of deals. They're risky and you can get badly burned if you don't know what you're doing
0 votes Thank Flag Link Mon Jan 10, 2011
100% cashier's checks at the courthouse steps. Check in with the auctioneer first and he will examine adn approve you for bidding. No agent required. Due diligence is a must. Good luck.

Steve Innis
Web Reference: http://ClairemontRealty.com
0 votes Thank Flag Link Mon Jan 10, 2011
You do not need an agent, although I have helped buyers purchase properties at auction. You need cash or a cashiers check to purchase a property at auction and I don't believe you can purchase title insurance. You can not obtain a loan on a purchase at auction...
0 votes Thank Flag Link Mon Jan 10, 2011
I am assuming you are talking about an auction at foreclosure on the courthouse steps. You don't normally have an agent because we don't deal with foreclosures. Once it has been foreclosed and goes to the auction either someone buys it or the bank keeps it and then it is a foreclosed home or bank owned homes. Then the bank lists it with a Realtor to sell and then we, as real estate agents, can sell it to anyone. You are on your own at the auction. Normally they require 10% cash on the spot, but that might vary.
0 votes Thank Flag Link Mon Jan 10, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer