Your first real estate auction can be a little overwhelming with the whirlwind of activity. Our team at Greenways Real Estate & Auction in Covington, VA, are the property auction experts of Virginia and West Virginia. Below, we’ve laid out the auction process to help you better understand the day’s events and what will be expected of you.

The Real Estate Auction Process

1. Before

Half an hour before the auction begins, the seller’s agent needs to display the property’s documentation. The laws for this documentation vary by state, so you’ll need to talk to your agent about what’s applies to you. The seller must set a reserve price, or the lowest price they are willing to sell the home for. The auctioneer will make an announcement introducing the home and sharing this documentation with the attendees.

2. During

The auctioneer will ask for an opening bid and will share an amount that all additional bids must increase by, such as $1,000 or $5,000. Buyers can bid each other up, and once the reserve price is met, the property is considered officially on the market and ready to sell. The auctioneer will announce that the property is sold when the final, highest bid is placed. If the reserve price is not met, they will give the seller an opportunity to accept the lower bids or choose not to sell the home.

3. After

The buyer will need to provide an immediate deposit after the auction, which is usually around 10% of the sale price. The remainder will be paid at a settlement date determined by the seller, which is usually 30, 60, or 90 days after the auction. The sale is final when this remainder is paid and all contracts have been signed by both the buyer and seller.

Whether you are going to sell or buy a home, a real estate auction can be a convenient and stress-free way to do so. Our professionals at Greenway’s Real Estate & Auction make selling and buying real estate simple, straightforward, and easy. Give us a call today at (540) 962-1155 to discuss selling your home, and sign up for our email alerts online to be notified of all our upcoming auctions.