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| How It Works - Online Auction Event |
| REGISTER |
| The first step in buying properties at a VHA auction is to register. Registration is free, and there is no obligation to bid on or buy any property. You can register online right now. It's easy! Registration allows you to receive notices of additions and deletions to the auction, as well as the ability to track the properties that you are interested in. You do not have to provide credit card information until you decide to place a bid on a property. |
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| PRE-QUALIFY |
| If you plan on financing your purchase, we highly recommend that you pre-qualify for financing with one of our designated auction lenders at this point. There is no cost or obligation to the pre-qualification process, and it generally takes less than 5 minutes to complete. VHA designated auction lenders are leading companies that you know and recognize. Loan rates offered by VHA designated auction lenders are competitive, and vary by individual borrower financial information. As a bonus, if you pre-qualify and close a loan with one of our designated auction lenders, you will receive a $500 discount off of your closing costs. |
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| You may also choose to use a different lender. If you use a different lender, you must obtain a pre-approval, not a pre-qualification. You can also purchase the property with cash. If you choose to do an all-cash purchase, you must provide proof of funds in a recent bank or asset statement showing the funds available in the account in which you will be using to purchase the property. Regardless of whether you use financing or choose an all-cash purchase, there is no financing contingency in your Purchase Contract, and if you do not qualify for financing or can not close in time, you may lose your Earnest Money Deposit. |
| REVIEW THE PROPERTIES/ATTEND OPEN HOUSES |
| Review the available properties on our website. Each property has information, pictures, and other disclosures. Once you have identified properties that interest you, you need to review the property information and disclosure documents pertaining to those properties in order for you to make an informed decision.You need to visit the properties that interest you on the open house dates provided on the property details page. During your visit, please make a complete and thorough inspection of each property. You may wish to bring a fully licensed and bonded home inspection professional to help you complete your inspection. You should do your homework prior to your visit and prepare a list of what to look at during the open house. Inspect the home thoroughly and attend as many of the scheduled open houses as necessary to complete your research. If you are planning on doing any repairs or upgrades, you may wish to bring your contractor to the open house. By registering and bidding during 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 be diligent and do your inspections and investigations prior to the auction. There is no inspection contingency on any property you buy at auction. |
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| REVIEW PURCHASE CONTRACT AND AUCTION TERMS AND CONDITIONS |
| By bidding on a property at a VHA auction, you agree to the Auction Terms and Conditions. This document can be found on our website. We recommend that you read this document thoroughly before bidding on a Property during the auction. aaaaaa If you are the winning bidder on a home, you will also be required to sign the Purchase Contract during closing. The Purchase Contract is also on our website. We recommend that you read this document thoroughly before bidding during the auction. Additionally, there may be property disclosure documents on the property details page that you should also read before bidding on any Property. |
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| BID ON PROPERTIES DURING THE AUCTION |
Once you are ready to bid, a deposit in the form of a credit card authorization is required. This is ONLY an authorization, and it will be removed within 24 hours if you are not the winning bidder at the auction. If you are the winning bidder, the authorization will be removed upon receipt of the earnest money deposit. The credit card deposit amount is based on the bidding limit you set for yourself. This amount varies from $2,500 to $15,000.
To bid, simply click on the Bid Now button next to the property that you are interested in purchasing and enter the bid amount. You will be asked to confirm the bid amount and once you have done so, your bid will be officially entered. If you provided us with your email address, you will receive an email confirmation of your bid as well as any bids that subsequently come in that are higher than your bid.
You also have the option of placing a proxy bid. Proxy bidding is a convenient and safe way to bid when you're not around your computer to a limit that you feel comfortable. A proxy bid is simply the maximum amount you will bid on a property. For example, assume the current bid is $105,000 and the minimum bid increment is $5,000. If you place a proxy bid of $120,000, the computer would initially take the next minimum bid increment and put in a $110,000 bid for you. If you are highest bidder, the computer will not bid again on your behalf. However, if some else then bids $115,000, the computer will put in a bid of $120,000 for you. If someone else bids $125,000, the computer will not bid again for you as you will have reached the proxy bid amount limit you specified. A 5% buyer's premium will be added to the highest successful bid to determine the final purchase price. For example, if you have the winning bid at $100,000, your actual purchase price will be $105,000 ($100,000 bid plus $5,000 buyer's premium). Please take into account this buyer's premium as you decide how much to bid on a property during the auction. The 5% Buyer's Premium is often financed as part of the purchase price. The 5% Buyer's Premium is not a real estate commission; it is the fee that VHA charges bidders for bringing the property to auction, and is separate from any commissions paid to real estate brokers by the sellers or VHA. The 5% Buyer's Premium is used to help VHA promote the auction and defray the auction expense costs without having to pass on all of those costs to the seller. It is a standard practice utilized by most major auction companies.
When the auction ends, the website will indicate the property is "sold" or "sold subject to confirmation."
Properties "sold subject to confirmation" are subject to an unpublished minimum selling price or "reserve price," which the winning bid did not reach. If bids do not meet the reserve price, the seller has the right to accept or reject them at the seller's sole discretion. The starting bid is not the reserve price.
The winning bid is not a final sale (or a binding contract) of the property but only an OFFER by the bidder to purchase the property from the property seller. NO property sales are final at auction until there is a mutually acceptable written purchase contract executed by the property seller and the winning bidder. |
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| AUCTION ASSISTANCE |
VHA is available to answer your questions about the auction and the bidding process. Send you questions to bids@valuehomeauctions.com or call us at (800) 974-2328.
ALL SALES AT THE AUCTION ARE "AS-IS AND WHERE-IS" |
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Homes are "as-is" and "where-is" with no opportunities for further inspection. |
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The Purchase Contract provides for no contingencies. |
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You can review all available disclosures concerning an individual property on the property details page. |
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| CLOSING |
If you are the Winning Bidder, congratulations! You will receive an email with the purchase contract, escrow or closing instructions, earnest money deposit forms and certain other documents. We will also contact you within 24 hours of the end of the auction to help you complete the documents and determine the proper amount of your earnest money deposit. The Earnest Money Deposit is the amount of money that the winning bidder must deposit with the escrow/closing agent on auction day. This is not the down payment but it may be applied toward the down payment.
If you purchase one property only, your earnest money deposit will consist of a wire equal to 5% of the total purchase price. For example, if the total purchase price is $200,000, your earnest money deposit will consist of a wire in the amount of $10,000, which is 5% of the total purchase price. If you purchase more than one property, your earnest money deposit will consist of a wire equal to 15% of the total purchase price. Finally, we require that you complete the forms and send in the earnest money deposit within 24 hours of the time we initially contact you. You must complete and return the documents within one business day, together with your Earnest Money Deposit by wire transfer into escrow. Failure to do so may result in your credit card being charged for the balance of your Earnest Money Deposit. Moreover, the sale will become null and void and the property will be subject to re-auction.
The Purchase Contract requires a 30-day closing timeframe which many outside lenders and cash purchasers cannot meet. If you fail to close on time you could be subject to liquidated damages resulting in a forfeiture of your Earnest Money Deposit.
When escrow closes you will receive a CLTA owner's policy of title insurance for the amount of the purchase price issued by a national title company showing the property to be free and clear of any financial liens other than future property taxes and bonds.
There has never been an easier way to buy properties. We look forward to your participation in our VHA online auction event! |
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