Buyer's Guide

If you are in the market to purchase property and you are considering buying at auction, you have made a wise choice as auction sellers are motivated to sell. They have made a financial and personal commitment to sell and not just shop for an unrealistic price. The auction process eliminates the hassle of negotiating with the Seller. Banks, lenders, estates, trusts, and government agencies have property that must be sold and the auction method is the most open and transparent sales process and the buyer knows he/she is getting the property at a fair market price.

HOW TO GET STARTED

The following is a summary of phases in purchasing property from the auction process.

EVALUATE THE INVESTMENT

The weeks prior to the auction is your time to evaluate the information obtained from the prepared information package provided on the property by Chapman Auction Group, LLC. Information would consist of financing, zoning surveys, title search, environment report disclosure, and terms and conditions of sale. Please pay close attention to the terms and conditions of the sale. There are details in the terms and conditions that can affect your purchase, such as, financing, bid deposits, closing deadlines, funds required to bid at auction, etc.

PRESALE INSPECTION

Schedule an appointment during the presale inspection period to inspect the property prior to the auction date. The property is being sold on as "As Is, Where Is" basis with all faults and seller making no representation or warranties except as described in the purchasing and sales contract. Obtain any additional research on the property you feel necessary, including, experts or legal advice that will help you in your decision. Those inspecting the property assume all risks associated with any inspection.

METHODS OF BIDDING

Attendance at the auction site is by far the most exciting method of bidding, however, you can participate by phone bidding or absentee bidding and in some cases internet bidding is available on certain properties. Buyers can remain anonymous throughout the entire process by utilizing one of remote bidding processes.

PAYMENT/FINANCING

Please note that the property is not being sold subject to financing. You must pre-arrange financing or have the cash reserve to close the purchase before you bid so you will be able to bid with confidence. If you would like to obtain a sample contract to review before the auction please contact our office.

BIDDER DEPOSIT

Certified funds are required to obtain a bidder number prior to auction. Please refer to the terms and conditions of this property from the brochure or contact our office for a copy that outlines the funds required to bid and close:

  1. If obtaining financing provide a loan commitment document.
  2. If using cash have check accompanied by an irrevocable bank letter of guarantee on that account.
  3. Cashier check in the requested amount made payable to Chapman Auction Group LLC Escrow Agent along with a bank letter of guarantee for the funds. Only the successful winning bidder will be required to tender their check at the conclusion of the bidding.
  4. Wire Transfer funds must be received by the escrow agent before auction day. Contact our office to receive wire transfer instructions. In the event you are not the successful high bidder your funds will be returned to you by wire transfer.

PRE-REGISTRATION

Pre-registration is strongly promoted and encourage pre-registration prior to auction to pre-qualify bidders prior to the auction and all bidders must present funs or cashier’s check that will be equal to the 10% Buyer’s Premium if they are the winning bidder. You must contact us 48 hours prior to auction for instructions and funds must be received 24 hours prior to auction.

REGISTRATION

We recommend that you arrive at the auction one (1) hour prior to the auction to register, answer any questions you may have, and present your certified check or cashier’s check to receive your bidding number.

Registration at the auction finalizes each bidder agreement to the terms and conditions of the sale as stated in the contract.

Registration and receiving a bidder number means you agree to be bound by the terms of the sale in the contract as they are final if you become the high bidder. To bid via telephone or internet you must pre-register and post a deposit 24 hours prior to the auction.

TIME TO BID

Prior to the auctioneer beginning his chant, you should have a dollar amount that you have already determined your maximum bidding price in mind and prepared to make your bid accordingly. Pay attention to the "Ringmen" to ensure they have your bid.

If you are the winning high bidder you will sign a purchase and sales agreement and receipt of your earnest money deposit. The deposit is typically equal to 10% of the purchase price. The purchaser will be requested to pay the balance of the purchase at closing, usually within 30 days of auction.

Some auctions have a "subject to confirmation" clause where the seller retains the right to accept or reject the winning bid within a specific time of approximately five days.

PLEASE NOTE

If you are interested in one of our properties or would like to be informed of an upcoming auction, please contact Chapman Auction Group LLC at (901)334-1754 or (800)829-5340 or by email to info@chapmanauctiongroup.com to request an information package on the property you are interested in and let us answer any questions you may have.

Call Us Now