If you’re interested in purchasing a property or items from an estate, an online auction is a convenient, simple solution. However, if you’ve never participated in one before, you may have some questions about how the process works. Below, our team at Greenway’s Real Estate & Auction in Covington, VA, answers some common queries we receive on this subject, so you can feel well-prepared for the upcoming event.

Top 4 FAQ About Online Auctions

How Does a Reserve Work?

The reserve is the minimum price the seller is willing to accept for an item. If the highest bid is below the reserve amount, the item will not sell. Many auctions will not allow you to bid below the reserve price. However, some items or properties will not have a reserve, which means they will go to the highest bidder, no matter how low the bid is.

Should I Place a Last-Minute Bid?

It’s a common misconception that waiting until the last minute to place your bid online is a good strategy. In most cases this will not give you an advantage. In fact, it may lead to losing the item or property if there is a technical issue or if you have a poor internet connection.

What Happens When I Buy a Home?

If you are the successful online bidder for a property, the auction company will call you at the number you provided during registration. They will then send you the purchase agreement and all other applicable documents to provide your electronic signature, at which time you will need to pay the deposit. The closing process will then begin.

If they cannot reach you within 30 minutes of your successful bid, or you don’t sign the documentation in a timely manner, it is up to the seller’s discretion whether they would like to declare you in default. When this happens, you may be responsible for liquidated damages. Additionally, the auctioneer can immediately place the property for sale again.

How Do I Register?

The registration for online bidding closes 48 hours before the start of the auction. Try to register as early as possible, so you’ll receive information about the properties and any important changes before the auction. Participants must be over the age of 18 and must register with the clerk to receive a bidding number. You will provide a credit card number for authorization at this time. Unless you are approved in advance, you can only use the bidding number to purchase one item per auction.

Our team at Greenway’s Real Estate & Auction has conducted more than 2,000 auctions, and we always have something new coming up. Visit us online to see our current real estate listings, and call us at (540) 962-1155 to ask about any upcoming online auctions. We will get you set up to start bidding like an expert in no time.