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Pre Auction
Q.What types of properties will be sold at this auction?
Ans.Our Commercial Real Estate auctions feature many types of properties including multifamily, office, industrial, retail, business parks and more.
Q.Who owns the properties that are being offered at the action?
Ans.As various as the types of properties themselves, the owners can included banks, lenders, investment groups, hedge funds, other financial institutions and even individual investors or corporations.
Q.How are the values determined? How current are they?
Ans.The previously valued to price is based on the higher of: A) the appraised value of the property in connection with the most recent mortgage on the property, B) the most recent asking price, C) the assessed value, or D) the most recent broker price opinion.
Q.Should I inspect the property prior to bidding at the auction?
Ans.Yes. We highly recommend all potential bidders conduct all property evaluations and inspections, as well as prepare financing prior to the auction. In addition, it is important to inspect and review any property information and disclosure documents pertaining to that property. If complete due diligence is performed in advance, and proper financing has been arranged, buying real estate at auction should be a streamlined process. By registering and bidding in the auction, you are representing that you have not only viewed the property prior to bidding but have also inspected, reviewed and accepted all relevant property information you deem necessary to make an informed decision. The properties will not be open for inspection after the auction so it is important to be diligent, and perform inspections and investigations prior to the auction.
Q.Can Bidders bring a contractor with them during inspection?
Ans.Absolutely. We encourage bidders to bring one contractors to inspect the properties. Please coordinate the schedule of all your contractors to assist the broker in managing the inspection process for other interested bidders.
Q.Do I need to register to bid at the auction ?
Ans.Yes, we recommend that you register at least 48 hours prior to the beginning of the online auction in order to receive information relating to the event; however you may register up to 48 hours prior to the expiration of the bidding period. The registration is easy and there is no obligation to the registered bidder to bid. NOTE – You must register separately for each auction event listed in the auction calendar.
Q.What is a Pre-Auction Bid?
Ans.A pre-auction bid is exactly what it sounds like: A bid placed prior to the start of the live, on-line bidding process. Making a Pre-Auction Bid provides an opportunity to present your HIGHEST and BEST bid to the seller OUTSIDE of the live, on-line auction bidding process. All Pre-Auction bids will be submitted to the seller for consideration IMMEDIATELY and are subject to seller approval and acceptance. The pre-auction bidding period ends 5-days prior to the start of live, on-line bidding. Please note: Pre-Auction Bids will NOT be entered as an Auction Day Bid.
Online Auction Process
Q.What do I need to provide if I am bidding in one of your online auctions?
Ans.To obtain approval to bid, you must register for the selected auction event and place a bidding deposit in the amount of $1,000.00. If you plan to bid and purchase a property at the online auction, you must have:
- Registered for the event and funded your $1,000.00 via credit card, cashier’s check, or wire.
- Completed your Proof of Funds documentation. This request will be emailed to you after you have successfully registered for the event. This proof can consist of a bank statement (account numbers may be blacked out), letter from a financial institution stating the availability of funds, or a letter from a certified financial institution/professional showing the individual’s ability to complete the sale.
- Ability to pay via wire transfer or cashier's check the balance of the required ten percent (10%) Earnest Money Deposit if you are deemed the winning bidder. Such payment must be received within 48 hours after the end of the online auction.
Q.What if I have a real estate agent or broker?
Ans.REDC welcomes broker participation! Brokers representing winning bidders will be eligible for a cooperating broker fee from the broker representing the seller. A cooperating commission will be based on the Winning Bid Amount, and will be paid to Registered Brokers/Agents whose client(s) successfully purchase a property and close escrow. See individual property information tabs for further cooperating broker fee allocation details. To qualify, make sure your broker/agent pre-registers with REDC as a "Registered Broker" at least 24 hours prior to the beginning of the on-line auction. To go directly to Broker Registration, click here: https://www.auction.com/broker-registration.php?auctionType=commercial&. Please see the Auction Terms and Conditions in regards to broker/agent participation for a full explanation.
Q.Can I purchase more than one property at this online auction?
Ans.Yes, however, if you are planning to purchase more than one property, you must show Proof of Funds in excess of the total you are looking to purchase.
Example: If you plan on bidding $1,000,000 on Property #1 and $2,500,000 on Property #2, your Proof of Funds must show liquid funds in excess of $3,500,000.
Q.What is the Buyer's Premium??
Ans.A Buyer's Premium is added to the winning bid amount and is equal to the greater of five percent (5%) of the Winning Bid Amount or $20,000* to establish the Total Purchase Price. For example, if the winning bid amount is $1,000,000, then the Buyer's Premium would be $50,000 (5% of $1,000,000). The Total Purchase Price is then calculated as the Winning Bid Amount plus the Buyer's Premium, or $1,000,000 + $50,000 = Total Purchase Price of $1,050,000. Conversely, if the winning bid amount is $150,000, then the Buyer's Premium would be $20,000 (the greater of 5% of the Winning Bid Amount or $20,000), if applicable*. The Total Purchase Price is then calculated as the Winning Bid Amount plus the Buyer's Premium, or $150,000 + $20,000 = Total Purchase Price of $170,000.
Remember: A Buyer's Premium is equal to the greater of five percent (5%) of the winning bid amount or $20,000* will be added to establish the Total Purchase Price.
*Minimum Buyer's Premium may be different or not applicable to some properties. Please refer to the website property page for specific details.
Q.What is the Earnest Money Deposit?
Ans.The Earnest Money Deposit (usually equal to the greater of ten percent (10%) of the Total Purchase Price or $20,000, unless otherwise noted in the purchase and sale agreement for the property) is the amount the winning bidder pays immediately following the auction. If you funded your $1,000.00 bidder registration with a credit card, the card will be released when you have completed the wire of your earnest money. If you funded your $1,000.00 bidder registration with a cashier’s check or wire, this will be sent to escrow and applied to the total earnest money deposit. Hence, the total due to escrow for your purchase will be reduced by $1,000.00 You will be provided with a receipt via e-mail showing that the escrow/closing company received your Earnest Money Deposit. There are no exceptions to this requirement.
Q.What if I buy more than one property, what is my Earnest Money Deposit requirement?
Ans.If you buy more than one property, then a separate Earnest Money Deposit is due for each property.
Q.If I am the winning bidder, can I assign my contract to someone else?
Ans.No. The purchase and sale agreements are not assignable. All parties who wish to buy must register for the auction and execute the necessary documents if they win.
Q.What if I change my mind? Can I cancel the transaction after the fact?
Ans.No. Once the online auction is final, you have agreed to purchase the property. That is it why it is important for you to conduct all of your due diligence and inspections prior to the auction and prior to bidding on the property. Winning bidders may be subject to liquidated damages and/or pursuit for specific performance if they fail to complete the transaction. Please review the Auction Terms and Conditions for further information.
Q.Do you publish auction results?
Ans.No. Once escrow closes, you may obtain the information from the County Recorder 's Office.
Q.What are the benefits of an auction?
Ans.The benefits of the auction process are numerous. Achieving a price through competitive bidding is many times the only method to determine a property's true market value. The auction provides a marketplace where sellers and buyers can meet. The buyer is exposed to multiple offerings simultaneously enabling market comparisons quickly and easily. Additionally, the buyer is able to set their own price and bid to their own set limits based the research and due diligence they complete.
Q.How is the property transferred to the bidder?
Ans.Usually, a warranty deed is conveyed, however all bidders should review the terms of the purchase and sale agreement for specific deeding information.
Title
Q.If I bid on a lender foreclosed property, are there any liens on the property?
Ans.No. The sellers provide insurable title, subject to certain exceptions, to the properties sold at auction. Please review the property's purchase and sale agreement for specific details. 
Q.Can I choose my own Title Company?
Ans.The Seller provides a title policy with the property and chooses the title company that will issue such policy. Please review the property's purchase and sale agreement for specific details.
Q.When will I receive title to any property I may purchase?
Ans.The closings are expected to occur within 15-45 days following the conclusion of the auction. At closing, and upon payment of the total purchase price and closing costs, you will receive insurable title vested as you designated to the closing agent. Please consult the Purchase and Sale Agreement for specific timeframes for closing.
Finance/Closing Costs
Q.Is financing available?
Ans.All financing must be obtained by the bidders – unlike REDC's residential REO auction, there are no auction day lenders available. Prior to bidding, we highly recommend that bidders contact a lender or mortgage company to arrange financing.
Q.What are the closing costs?
Ans.The closing costs that the winning bidder will be responsible for will be set forth in the purchase and sale agreement specific to that property. Costs may include escrow fees, recording fees, normal pro-rations, title insurance premiums and fees, loan fees, document processing fees and document transfer taxes.
Registration Process
Q.Can I use credit card for the auction registration deposit and/or the Earnest Money Deposit?
Ans.A credit card authorization can be established to fund your auction registration deposit, however credit cards are not accepted for payment of the Earnest Money Deposit.
Q.I am trying to register for the auction…why won't it let me?
Ans.If you experience any problems, please contact the customer service group or the property-specific broker listed on each asset’s web page for assistance.
Can I bid if I am not a US citizen?
Ans.Yes, anyone can bid. The registration and bidding process are the same for all bidders.
Q.I registered for the website, but why can't I bid?
Ans.You may have created your profile at Auction.com, but did not register to participate in an auction event. Please go to the “Online Bidding” tab, click on the auction for which you'd like to participate and then click on the “Register Now” button.
Q.I registered, but it didn't ask for an initial deposit, how do I put in my initial deposit?
Ans.Make sure you are registering for the online only auction event. Please go to the “Online Bidding” tab, click on the auction for which you'd like to participate and then click on the “Register Now” button.
Q.I forgot my password, how do I get back in?
Ans.On the sign-in page, click on "Forgot Your Password?" and fill in the answer to your security question. Your password will be automatically emailed to your user email address.
Q.Can I put my purchase in my corporate name?
Ans.Yes, you can put it in the name of a corporation, limited liability company, trust or partnership.
Q.What documents are required for Corporations?
Ans.Your escrow officer will be able to direct you on this matter, but typically, buyers looking to purchase an asset through a corporation need to provide Articles of Incorporation (or similar state formation documents), a resolution authorizing the corporation and, authorization for the party signing the purchase and sale agreement to act on behalf of corporation in this transaction.
Q.What is required for Limited Liability Companies (LLC)?
Ans.Articles of Organization (or similar state formation documents) and a resolution authorizing the LLC and party signing the purchase and sale agreement to act on behalf of LLC in this transaction.
Q.What do I need to put it in a Trust?
Ans.Declaration of Trust and evidence that party signing the purchase and sale agreement is the Trustee of the Trust as well as the state in which the trust was formed & date of its inception.
Q.What is required for a Partnership?
Ans.Partnership Agreement and evidence of authority of party signing the purchase and sale agreement.
Bidding Process
Q.Can I bid on more than one property?
Ans.Yes. Your bidding limit is determined by your Proof of Funds. For example, if you would like to buy multiple properties that total over $2,000,000, your Proof of Funds documentation must show liquidity in excess of that amount. Don’t forget that your total purchase price includes a Buyer’s Premium. See Buyer’s Premium for details.
Q.What if I want to bid on back to back properties?
Ans.You may bid on as many properties as you like provided the sum of your bids does not exceed your Proof of Funds limit.
Q.Can I set a max bid once the auction has started?
Ans.Some events may include a proxy bid period, where you are able to set a bid amount and we will bid up to that amount for you automatically. On events that do not include this feature, you must make bids yourself.
Q.Can I set a proxy bid?
Ans.Some events may include a proxy bid period, where you are able to set a bid amount and we will bid up to that amount for you automatically. On events that do not include this feature, you must make bids yourself.
Q.When does the auction end?
Ans.The first property closes at the posted end time and the remaining properties will end in numerical order at various intervals. A property will have extended bidding time added if a bid is placed in the final seconds of the auction.
Q.Do all the properties close at the same time?
Ans.Properties are scheduled to end in sequence, approximately 30 seconds apart on the date and time indicated on the bidder page. End times for some assets may be extended in added time increments due to aggressive last minute bidding by multiple parties.
Q.What does the term “reserve” mean?
Ans.A “reserve” is an amount established by the seller which represents their minimum selling price. Reserve prices are not published and the starting bids do not represent the reserves.
Q.What happens to my auction registration deposit if I'm not the winning bidder?
Ans.All deposits will be refunded as soon as possible following the conclusion of the auction if you are not the winning bidder.
Winning Bidder Process
Q.How will I know if I am the winning bidder?
Ans.If you are the highest bidder when the property auction ends and your bid meets or exceeds the reserve price, then you will receive a winning bidder confirmation via email in very short order. The email will be followed up within 1 hour by a phone call from one of our auction coordinators, who will discuss with you the remaining steps.
Q.I received an email stating I am the highest bidder, but no one has contacted me. What do I need to do?
Ans.You will receive an email when you are the current, highest bidder on a property. If at the conclusion of an auction you have not received another email indicating you were outbid, you should receive an email indicating you were the winning bidder for this property (assuming the reserve has been met). If you have not been contacted, please call customer service.
Closing Process
Q.I haven't received my purchase and sale agreement, what do I do?
Ans.If you have not received your purchase and sale agreement (and related documents) within 24 hours of the conclusion of the auction, please contact customer service at 1-800-793-6107 and ask to speak with the Director of Online Sales.
Q.Can I add another name on the purchase and sale agreement after the auction?
Ans.All parties on purchase and sale agreement must be added at the time the agreements are being drawn up. We cannot add co-buyers after the documents are sent out. The contract delivery and signature process will be handled electronically via Docusign unless otherwise indicated.
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