Round Robin Auction – Questions & Answers (400 N Mount Rushmore Property)

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Q: Why is the home being sold at auction?

Because an auction provides a fast, efficient, and convenient way to sell a home in a manner that is fair to both buyers and sellers.

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Q: How does the “round robin” auction style work? 

The “round robin” auction style is a buyer-friendly format that eliminates all the usual risks associated with buying at auction. On Sunday(s), there will be an open house from 11:00 A.M. to 4:00 P.M. to visually inspect the property, sign up to participate in the auction, and place an initial bid.

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The actual auction is held by phone on Sunday evening. Starting at 7:00 P.M., each bidder will receive a call informing him or her of the current bid and offering them the opportunity to increase their bid in order to proceed to the next round.

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Rounds will continue until only the highest bidder remains. Buyers or their real estate agents will need to be available (at home or by cell phone) Sunday evening to receive multiple phone calls.

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Q: How do you sign up and enter the auction?

Come to the open house and visually inspect the home. There, you’ll fill out your information on the bidding sheet. Or, you can email your initial offer/bid to: bidding.trustee@gmail.com. Please note: No deposit is required to bid.

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Q: Are there any rules?

You need to visit and inspect the property you wish to bid on. Complete the bid sheet so that you can be contacted on Sunday evening (or e-mail your bid/offer with a phone number for return call).

 

You will need to be available by phone on Sunday evening beginning at 7:00 P.M. You will need to available on Monday to complete the paperwork, once you are confirmed by the trustee/auctioneer as the winning bidder.

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If the highest bidder fails to execute the contract or make payment arrangements by Monday without prior agreement, the trustee reserves the right to proceed with the next highest bidder.

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Q: Are there any liens or encumbrances?

Buyer will receive FREE and CLEAR title via General Warranty Deed, and the trustee will purchase title insurance from Austin Title Insurance Company. Any mortgages or debts against the property will be paid from the proceeds of the sale in full. Only 1st Deed of Trust is owed, current balance is $260,000. approx. and property tax is current.

 

Q: Is there an inspection contingency period? 

The inspection contingency period is ten (10) days.

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Q. When putting an offer in, okay to submit a normal Texas Standard Residential Purchase Agreement used by all the Realtors or Agents?

Yes. 20% down with 80% loan contingency is satisfactory for the "winning bidder".

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Q. All Cash Offers vs. a Buyer with 20% down, 80% Loan, which one is preferred? All Cash?

Neither. It is one who has the highest-bid price. Everything is based on the highest-bid price.

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Q. What if it does not appraise? 

Yes, last checked with the bank's appraisal sources, Trustee has an appraisal value ceiling of no more than $555,777. plus $12,000 2nd bath improvement, $17,000 Senior Walkin-tub plus shower in Master bedroom, $7,000 Hardwood Floor upgrades, $5,000. Nook Ceiling lights upgrades. Total home improvement of $41,000. Misc. $1,000. electrical box upgrade. Total Value of this property $597,777 in Seller's eye.

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Q: Is there a non-refundable deposit required for the buyer?

Yes. A $1,277.00 good faith deposit is required within 10 days of mutual contract execution. It becomes non-refundable after the 10-day inspection period, unless a significant material defect is discovered during that time. We are looking for real buyers that truly want to buy this home. This non-refundable deposit paid by the winning bidder will be applied to the purchase price.

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Q. Is there a loan contingency period?

You can still have your 21-day loan contingency period and "can be extended". Seller wants Buyer to own the home as the winning bidder; however, such loan contingency does not affect the executed purchase contract, as long as the buyer closes within the specified time.

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Q. Is there an appraisal contingency? 

You can still have your appraisal contingency period; however, such appraisal contingency does not affect the executed contract price, as long as the buyer closes within the specified time.

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Q. Is it better to fax in a bidding price offer, compared to a name and phone number on a bid sheet?

Yes. It shows you are serious about bidding. If the trustee ("Seller") receives two high bids at the same price, the one that took the time to e-mail in the offer with pre-approval of loan wins and will get the house.

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The final winning bid price is subject to confirmation by seller.

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