Let’s walk through some important information that you’ll want to be aware of after the auction has ended.
Most auctions will have a predetermined reserve price set by the seller. This is the minimum price the seller will accept for the property. After an auction ends, if the reserve is not met, the seller has the option to reach out to all bidders and ask for their final and best offer or they may make a counter offer to the highest bidder. Even if you are the highest bidder, if the reserve is not reached, the seller may reject all bids and market the property in another auction on Hubzu again. However, in some cases, they may decide to proceed with the highest bidder even though the reserve they wanted was not met. Keep in mind that it’s up to the seller to select which bid they proceed with, not Hubzu.
If the auction ends and there is no selected bidder, your bid deposit hold will be released. Please allow 4 to 7 business days for this to reflect on your credit card. If the seller decides to proceed with your bid, they will send you a Purchase & Sale Agreement or PSA. Please read the PSA carefully before signing and return it within the period of time specified on the PSA. So that documents can be signed electronically, this agreement may be sent via DocuSign. Additional Proof of Funds may also be required to proceed with the purchase of the property. Along with the PSA, you must also submit an Earnest Money Deposit (EMD) to the chosen escrow company. This is part of the standard home-buying process and shows that you’re serious about purchasing the property.
As the selected bidder, please remember that your bid deposit hold will be in place until you submit your purchase and sale agreement and your earnest money deposit. Failure to provide these items in the specified time will result with your bid deposit hold being converted to a non-refundable charge on your credit card. Once all of this information is submitted, a transaction coordinator from Hubzu will be assigned to you. They will help guide you through the closing process. Although the use of a real estate agent is not required, if you’ve decided to use one, the transaction coordinator will keep them informed as well. Make sure you respond in a timely manner to any requests made throughout the process.
That’s it! We hope you enjoy the bidding and purchase process. And, remember, if you have any questions don’t hesitate to reach out to our Customer Care team for assistance. Ready to bid on a property? Visit Hubzu.com and get in on the auction!
View the following video to learn more: