Auction - Do your due dilligence
(1) Registered and bid
(2) Did not think that I will win the auction, without reaching reserve so kept bidding up.
(3) When asked the customer service, they said, sometimes the seller may agree to sell without reaching reserve.
(4) Auction got extended by few minutes when I was the highest bidder, I had to bid even higher.
(5) Won the bid.
(6) When signing the auction contract, it required wire or cashier's check within 24 hours on a Saturday auction. Most banks are closed on Saturday so neither was a good possibility. Fortunately there were errors on auction contract that postponed remittence of money until Monday, which I was able to do.
(7) The ernest deposit required within 24 hours is to the title/escrow company, so I did not feel too bad about sending the cashier's check.
(8) The purchase contract is seperate than auction contract. The puchase contract was on standard real estate form. The selling agent made lot of errors on purchase contract so I prepared one myself and sent.
(9) The selling agent and auction.com required proof of funds within 24 hours after purchase contract was signed. This proof of fund was for the non-financed portion of the price.
(10) Auction.com told me that I could not be buyer's agent if I am buying the property for myself (If I am the bidder). In order to earn buyer's agent commission, you must have a buyer's agent, the buyer's agent must first register with auction.com prior to you starting bidding and somewhere in the rule it says that the buyer's agent must be present with you when you are bidding.
(11) If you have a buyer's agent all correspondence will go to your buyer's agent, you must have buyer's agent respond promptly, usually within 24 hours.
(12) The seller has approved the transaction and the bank is in the process of approving the sales transaction.
(13) There is a closing date, if the bank takes too long to approve, I may not be able to get loan approved in time and am expecting some issues in getting closing date extended.
(14) You must have previewed the property prior to bidding, which will introduce you to selling agent, where you can ask a lot of questions about title etc. Auction.com does not know anything about the property, it is an auction company putting a property for auction.
(15) The transaction is uncomfortable because the customer service keeps reminding you that your credit card deposit will be lost and you will be liable for liquidated damages and you are required to comply usually within 24 hours, regardless of the weekend or holiday, however, if you are prepared to purchase the property, have the funds readily available and have the time to respond within 24 hours, I believe the transaction can be executed.
(16) The property is occupied, auction.com disclaims to provide you with a vacant property, in the event the seller is a fraud, it is your responsibility to evict seller. You are required to close the property regardless of the occupancy status. In my case seller does not appear to be a fraud and intends to vacate the property.
(17) Lot more unknowns until the transaction completes. So far the credit card reserve has not shown as if charged to the credit card and the earnest money deposit is with the title/escrow company, therefore so far auction.com does not seem to have any of my money.
(18) If only auction.com customer service is a little more polite and 24 hour rule is relaxed especially on weekends and holidays the comfort level on transaction will increase.
(19) Will update all as things progress
Review about: Auction Bidding.