If you cannot be present on the date of the auction, you can sometimes submit an absentee bid to the auction company, who will take it as an official bid to purchase. If no one present at the auction bids higher than you, you win the property. It is a method of participating in an auction which you aren’t able to attend.
There are many ways an absentee bidding process can be handled. The auction
company may ask you to submit an offer on either the real estate being sold, or on
an item of personal property you are interested in prior to auction day, and they
then include your interest in the bidding up to your highest offer. You would then
be notified at the end of the auction whether or not you won the items.
The second way is through an online virtual bidding system. Some companies
have the ability to broadcast the auction proceedings in real time via the web,
which enables you to submit your bids either over the web or on the phone. This is
especially useful if you are going to be out of town, but wish to actively participate
in the bidding process. Keep in mind you will need to pre-register for this service if
it is offered.
Finally, another great method for absentee participation at real estate auctions is
the use of a Buyer’s Agent to be present at the auction in your place. Keep in mind
that it is always advisable to check the rules regarding this option with the auction
company. Also note that in a case where your Buyer’s Agent is not able to collect
a “Cooperating Broker Commission” from the auction company, you may be asked
to compensate the agent for his/her services. Different companies handle these
situations differently, so your best bet is to contact your Buyer’s Agent first, who
can then forward your absentee status to the auction company and then advise
you on your options. One major benefit of having a real estate professional
represent you at the auction in person is that they will be able to use the energy
and psychology of the bidding to your advantage. They can also remain on the
phone with you so you can make any last minute changes to your bidding strategy,
whereas a straightforward Absentee Bid on paper does not grant you that option.
Overall, absentee bids are usually handled under an established set of guidelines
by the auctioneer and his broker. The particular rules and procedures of absentee
bids are unique to each auction company.
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