Connect with our team to begin your journey.
We know auctions can feel different from traditional real estate, which is why we’ve put together this FAQ. Whether you’re a first-time bidder or a seller curious about the process, our goal is to make things clear, simple, and transparent. Explore the most common questions below and feel free to reach out for personalized guidance.
The Basics Every Buyer and Seller Should Know
A real estate auction is a public sale process in which properties (or sometimes personal property tied to real estate) are sold to the highest bidder. The bidding is open and transparent, with no hidden negotiations, so buyers and sellers know the price is driven by market demand.
Auctions create urgency and competition, often driving higher final prices for sellers. The process is also faster, with a set schedule for bidding and closing that provides a clear timeline. Because all bidders can see the offers, auctions bring full transparency and reduce uncertainty. Sellers also have the option to set a reserve price to protect their minimum acceptable value.
What to Know Before You Raise Your Paddle
You’ll need to complete a registration form (online or in person) and provide valid identification. Some auctions may also require proof of funds or a deposit prior to bidding.
Yes — most auctions require a deposit (often 5–10% of the bid) immediately after winning. The deposit demonstrates your commitment.
A buyer’s premium is an additional fee, usually expressed as a percentage of the final bid, added to determine the total purchase price. For example, if the winning bid is $100,000 and there’s a 10% buyer’s premium, the contract price becomes $110,000.
Yes, but it’s best to secure financing ahead of time. Auctions often require a relatively quick settlement (e.g. 30 days), so being pre-approved reduces risk.
Absolutely. Properties at auction are typically sold “as-is,” so buyers are encouraged to visit the property, perform inspections, and research any issues (zoning, easements, environmental concerns) ahead of time.
You’ll be required to sign the auction contract immediately or shortly thereafter, pay the agreed deposit, and then complete the balance of funds by the closing date specified in the terms (often 30 days).
If the auction is a reserve auction, the seller has set a minimum (reserve) that must be met for the sale to be binding. If that reserve isn’t reached, the seller may reject the bid or negotiate separately.
In a no-reserve (absolute) auction, the property will be sold to the highest bidder regardless of amount.
Understanding the Benefits and the Process
In many real estate auctions, the seller’s traditional commission is replaced by a buyer’s premium, meaning the buyer pays part of what would otherwise be commission. Sellers typically only pay a marketing or administration fee.
Typical timeline includes:
Total process: ~60–75 days in many cases.
We use a combination of online exposure, print media, signage, social media, direct outreach, and local networks to drive qualified bidders. The goal is maximum visibility to attract competitive bids.
Yes. The reserve is the minimum price you are willing to accept. If bids don’t reach that amount, you may choose not to sell.
What Happens Once the Hammer Falls
Yes. In most auctions, when the highest bid is accepted, a binding contract is formed. Bidders should fully understand the terms before bidding.
Buyer will lose deposit. The seller and auction company reserve the right to pursue legal remedies.
Yes. Many auctions offer options for online bidding, phone bidding, or proxy bidding. Check the auction listing for specific allowed methods.
Usually not — auctions frequently sell properties “as is” with limited contingencies. That’s why doing all due diligence before bidding is crucial.
Whether you’re preparing to sell property or eager to start bidding, our team at Adcock Auctions is here to help. We’ll walk you through the process, answer your questions, and make sure you feel confident from start to finish. Reach out today and let’s take the next step together.