I've never attended a real estate auction before...What do I do?

 

Step 1: Arrive about 20 minutes before the auction begins. Register to bid by filling out a registration card and obtaining a bidders packet at the registration table.  Help yourself to a refreshment and have a seat.

 

Step 2:  Review the information contained in the bidders packet and contact one of the Diamond S Auction Team members if you have any questions. 

 

Step 2: Once you have registered and reviewed the information in the bidder's packet.  You need to determine how much you are willing and able to pay for the particular parcel, tract or combination of tracts being auctioned. Since your needs and desires are unique, your evaluation of the property will probably be different from anyone else’s.

 

Step 3: As the auction begins listen closely to the auctioneer and other auction staff for announcements, parcel/tract descriptions and other important information.  As the auction progresses the auctioneer will call for bids in the traditional rapid cadence manner, simply raise your hand when you want to bid.  If at any point during the auction you become unsure whether or not you have the current bid or not simply ask your bid assistant and they will confirm whether you are in or out. 

 

Step 4: If you have any questions during the auction, simply motion for one of the Diamond S Auction Team members. These bid assistants are here to help you understand the process completely.

Is it okay to come and just watch?

Absolutely! Anyone and everyone is welcome at a Diamond S Auction.  If you're thinking of buying or selling property at auction or perhaps you're just curious about how the auction process works.  We welcome and encourage you to attend an upcoming auction to see the auction method of marketing in action!

What do I need to bring to the auction in order to bid?

 

You will need to bring some form of valid state issued identification to register as a bidder.  You will also need to bring sufficient funds in the form of cash, cashier's check, immediately negotiable business or personal check to pay 10% of the purchase price as a deposit if you are the winning bidder on the property.

 For large tracts of land (typically farms and ranches) the property will be divided into several tracts of varying sizes and types.  A Multi-Tract Land Auction allows bidders to bid on individual tracts, combinations of two or more tracts or the entire property, and to design the purchase that best suits their unique needs and desires. This win-win system affords potential buyers many more options over traditional land auction methods. It also increases the buyer base for the seller because it gives all bidders an equal change to buy whether they want the entire farm, just one tract, or anything in between.

Sounds Confusing?

No! All sales are on an “as-is” basis. There are no warranties as to the condition and/or the fitness of the property for a particular use. We do our very best to provide ample documentation about the auction properties but we strongly encourage all buyers to do their due diligence prior to sale day for their own protection.

Diamond S Auction & Real Estate Co. schedules previews by appointment for most properties.  One of our representatives will meet with you and make every effort to afford you ample access to the property to assist in your purchase decision.

An absolute auction is a public auction without a reserve or minimum price. This is the purest form of auction.  It is a sale that is 100% market driven.  This means that the property, once the auction begins, will be sold that day to the last and highest bidder regardless of price.

Under a reserve auction the auctioneers will submit the highest and best bid to the property owner. The owner has the right to accept or reject that bid. If the property is not labeled as absolute, it will be sold on a reserve basis.

A buyer’s premium is an amount that is added to the high bid for some auctions. Some buyers premiums range from 5 to 15 percent of the final bid price.  This amount is added to the winning bid. 

 

      $350,000 (Final Bid Price)

 +   $  35,000 (10% Buyer's Premium)

                $385,000 (Total Contract Price)

 

In most cases, Diamond S Auction & Real Estate Co. does NOT charge a buyers premium.

At a Diamond S Auction the buyer knows that the seller is fully committed to sell. Our auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction. Likewise, the auction agreement obligates the seller to transfer title to the highest bidder that meets or exceeds the reserve price in a non-absolute offering.

 

Our buyers know that they are getting the property at a fair price. The buyer can feel comfortable with the purchase knowing that there is a contending bid just one increment under the purchase price. Additionally, the buyer sets their own purchase price through the bidding process, which eliminates the need for lengthy and stressful negotiation periods. Auctions also reduce time needed to purchase property, buyers do not have to worry about contingencies because purchasing and closing dates are known in advance of the sale. Finally, the due diligence of inspection is performed by you or your own trusted source to your satisfaction in advance of the auction to allow you to make an informed purchase decision.

Generally, our contracts allow a 30 day period from the auction day to close on the property.  However, if you are ready to close sooner the closing can typically be arranged within two weeks or even sooner in some cases.