bidding
process

Bid Deposits

• A bid deposit of $2,500 is required to bid on a property. The deposit is actually a hold placed on a credit or debit card. We require the deposit to ensure that we have serious bidders. Unlike a charge, a hold authorizes us to confirm that your account is valid and you have a significant amount of credit. The hold will not appear as a charge anywhere on your credit card statement. On a debit card, the hold will appear as a “pending charge.”
• We will instruct your credit or debit card issuer to remove the hold on the Saturday following the auction. Each bank, however, has its own policy. Please contact your financial institution to find out how long it will take.

Online Bidding

Before you bid on a property, make sure you’re prepared. Study the property details page carefully and do your due diligence. You will need to place a bid deposit and prepare your Proof of Funds. After you are satisfied with your research, follow these steps to begin bidding:

• Log onto your Auction.com account.
• Go to the property details page. Take note of the auction dates because you will need to place your bid within the online bidding period during the auction.
• When the auction begins, type in the amount you would like to bid and click the “Bid Now” button.
• You will be required to bid in the increments stated on the property details page. Each bid needs to equal or be above the increment amount. The increments, which may change throughout the auction, will be shown when the auction begins.
• Check in often, especially in the final minutes of the auction. Bids that are placed within the final minutes will trigger an overtime bidding period to allow all interested parties to keep bidding. This extended period gives everyone a chance to place last minute bids.
• When the auction is over, we’ll send you an email letting you know if you were outbid or if you were the highest bidder. Either way, we will return your bid deposit. If you are the highest bidder, we will let you know if the seller accepts your bid. Sometimes, the highest bid is still too low for the seller to accept. If the seller accepts your bid, you won the auction!

Pre-Auction and Proxy Bids

Pre-auction bids

• Start on the property details page to see if pre-auction bidding is available. Not all sellers accept pre-auction bids. If this option is available, and you decide to go this route, make sure to submit your highest and best offer.
• After you submit your offer, the seller will review it and we will notify you of the outcome within 48 business hours. If your offer is accepted, the auction will be cancelled and you will move into the closing process.
• If the bid is not accepted, we encourage you to register for the auction and bid again during the auction. Sellers may accept a bid around the amount of your pre-auction bid once the property has gone through the auction.

Proxy Bids

Proxy bids

• Begin on the property details page to decide if you would like to submit a proxy bid. A proxy bid allows you to submit your highest and best offer prior to the auction. The system then automatically bids during the auction on your behalf until it reaches your bid amount.
• After the auction is over we will notify you if you were the highest bidder. If you are the highest bidder, the seller will review your bid and we will notify you of the outcome. If the seller accepts your offer, you will move into closing.

Counter Bidding

• Counter Bidding is a common practice used by all major auction houses. Auction.com will counter bid on behalf of the seller in order to move the price closer to the Reserve Price, or minimum price that a seller will accept.
• When the bidding reaches the Reserve Price, Auction.com will no longer counter bid. Counter bidding is designed to help the buyer and seller reach a price that works for both parties so the auction will be successful. Please note: The exposure of counter bids is not required in every state.

Disclosing the Reserve Price

• The Reserve Price is disclosed in certain instances. It’s up to the sellers to decide whether to disclose the Reserve Price (or minimum amount that they will accept for a property). The sellers have the option of accepting an offer that is less than the Reserve Price, but once the Reserve Price is met, the sellers should be agreeable to sell the property.
• When the Reserve Price is disclosed, you can find it on the property details page under the number of beds/baths or under the Current Bid or Starting Bid. You can also search the site to find properties that disclose the Reserve Price.