Frequently Asked Questions

Q: “How quickly can you sell my property?”
A: Turn-around time between signing the contract and the auction date is usually 4 to 8 weeks. This
gives us time to have signs made and advertise your property in multiple channels.

Q: “Can I place a minimum amount that I need, or am I forced to sell to the highest bidder?”
A: Upon signing the contract, you may set a minimum amount that you must net. This is called a
“reserve” auction. You reserve the right to reject any bid that falls below your reserve amount. If the
highest bid exceeds that amount, you are obligated to sell.

Q: “How do buyer and seller premiums work?”
A: After the sale, 10% of the winning bid price is added to that winning bid. For example, if the winning
bid is $100,000, the premium would be $10,000 for a total of $110,000. Whether the buyer pays the
premium or the sell pays depends upon the auction.

Q: “When is the premium due?”
A: Upon completion of the auction.

Q: “If I win the bid for real estate, is all the money due the day of the sale?”
A: No. 10% is due the day of the sale. You are granted 30 days to close the sale, where the remainder
will be due.

Q: “Do I have to bring cash to the sale? Do you accept credit cards?”
A: While you have the option to bring cash, we also accept personal checks. Currently, we do not accept
credit cards.

Q: “What is the difference between a ‘reserve’ auction and an ‘absolute’ auction?”
A: A “reserve” auction means that the seller has placed a minimum amount they will accept for the
property, and thereby may reject or counter the highest bid should it not meet the minimum. An
“absolute” auction means that there is no minimum amount, and that the seller will accept the
highest bid.

Q: “Your auctions are called ‘cash sales’. Does that mean I cannot get a loan to pay for real estate?”
A: Since auctions are “as-is, where-is” sales, they are considered to be “cash sales” since there is no
financing contingency. However, you may still get a loan to pay for the property. Your lender needs
to be made aware that the property is an “as-is” sale. Not all lenders will lend on “as-is” sales.

Q: “Since auctions are ‘as-is’, what happens if there are issues with the title?”
A: Sellers are obligated to furnish a clean title. If a clean title cannot be furnished, you will be refunded
your 10% payment you made at the auction, and the property will remain with the seller.

Q: “If I get a home inspection done and there are items in need of repair, will the seller repair those items?”
A: Properties sold at auction are “as-is, where-is” sales with no contingencies. The seller is under no
obligation to make repairs.

Q: “I am a REALTOR®. If my client purchases real estate at auction, will I get paid?”
A: Yes! Cole Auction is REALTOR® friendly. We pay whether you bring us a buyer or a seller. If you are
representing a buyer, we only require, prior to the auction, that you inform us whom you are
representing. If you are representing a seller, we only require that you attend the initial consultation
with your client and attend the signing of the auction contract.

Q: “I just purchased a washer and dryer at one of your auctions. However, I didn’t bring a truck to haul them off. What do I do?”
A: We have specified time periods at the close of each auction to allow buyers to load up their
purchases for transport. We usually have someone stick around for two hours after the auction, and
we also schedule time the following day. Those times may vary by auction. We will announce those
times on our web page and/or at the auction.

Q: “Why is the property up for auction?”
A: There are various reasons for placing a property up for auction. Some reasons include court-ordered,
estate liquidation, or just a seller wanting to sell a property quickly and without the hassle of
traditional real estate sales.