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Convenience:  Zetabid events are a convenient and easy process for buyers purchasing real estate.  Almost all of our properties allow an inspection contingency and most can be purchased ‘Pre-Auction’ by submitting a bid on our simple online offer form.  We also cooperate with buyer agents and never require any broker registrations.  Our process is very simple and fair.

Auction Types:

  • Bid Deadline Auctions (aka silent or sealed bid auction):  Bids are submitted online up to the bidding deadline date.  Buyers complete a simple offer form and upload their proof of funds and/or lender pre-approval letter.
  • Online Auctions:  Just like eBay, you place your bid during a timed auction period once you complete registration.  If you are the high bidder when the clock runs out you win!  If subject to a minimum reserve price you will know right away if you are above or below the minimum price set by seller.
  • Onsite:  Live auctions usually at the property.  Auctions are broadcast live on the internet and bidders may bid from anywhere in the world.

High bidder wins subject to exceeding the minimum reserve price.  A Buy It Now price may be available on many assets which allows a buyer to end the auction.

The high bidder in an auction only creates 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 executed written purchase contract between the property seller and the high bidder.

Review Property and Documents

If you plan on bidding on a property at a Zetabid auction, you will be required to confirm your acceptance of the Auction Terms and Conditions. This document can be found on the property details page of every home. We recommend that you read the Auction Terms and Conditions thoroughly before the auction.

You should plan on viewing the property (see showing instructions dates and times) and there may be property disclosure documents on the property details page that you should also read before the auction.  Most assets provide for a brief inspection period to verify the property condition, but every bidder should view the asset first.

Register

When you are ready to begin bidding, the next step is to register for the auction. You must register in advance of the auction end date. Registration is free, and there is no obligation to buy or bid.  With sealed bid and silent auctions, the submission of your bid is a one step process and there is not a separate registration.

Separate registration is required for each individual auction event.  You must provide a credit card to validate your identity and prevent fraudulent bidding.  We will authorize a charge of $1 (not charging anything).  For property over $500,000, your bidding limit must be set by the auctioneer based on the your mortgage pre-approval letter or proof of funds you provide.  Auctioneer will contact you quickly to set your maximum bid allowance.  Do not attempt to register and bid in the final hours of an auction.  Get registered and gain bidding approval 24 hours before the auction ends.

Bidding

All properties, unless stated “absolute.”  have a reserve price which means the seller has set a published or unpublished minimum selling price. However, the seller has the right to accept or reject all bids at the seller’s sole discretion. The starting bid mayor may not be the reserve price but will always be noted.

For online auctions, bidding is very easy and works much like eBay.  You must outbid the current high bidder by the bid increment shown on the auction detail page.  You may also set your max bid amount and the system will bid for you up to your maximum bid when other bidders attempt to out bid you.

For Silent or Sealed Bid auctions, simply complete the online offer form (click the offer button on the zetabid property webpage) and upload your proof of funds (cash buyers) or mortgage pre-approval letter.

A buyer’s premium will be added to any final High Bid to determine the total purchase price. The amount of the Buyer’s premium is show on the auction detail page and often varies from zero to 5%.  A minimum buyer’s premium of $3,000 will be added to all properties unless there is a no buyer premium indication on the auction detail page.  For example, if you are the high bid at $300,000 on a home with a 5% Buyer Premium, your actual purchase price will be $315,000 ($300,000 bid plus $15,000 buyer’s premium). Please take into account this buyer’s premium as you decide how much to bid on a home at auction.  The buyer’s premium is not a real estate commission; it is the fee that Zetabid charges bidders for bringing the property to auction, and is separate from any commissions paid to real estate brokers by the seller.

 

Closing

Bidders submitting the winning bid will receive a bid confirmation and request for additional information (like vesting) so a contract can be filled out quickly.  Zetabid uses DocuSign to electronically sign contracts quickly and easily.  You will have 48 hours to e-sign the contract or Auctioneer may offer the deal to the second place bidder.  The high bidder’s bid is an offer to purchase the property that is subject to acceptance by the seller; no offer will be deemed accepted until seller executes the purchase agreement at a mutually acceptable purchase price.

When escrow closes, the seller will convey title to you by a recorded deed, and you will receive an owner’s policy of title insurance for the amount of the purchase price issued by a national title company in the amount of the purchase price showing the property to be free and clear of any financial liens other than future property taxes and assessments.

Closings generally occur within 30-45 days of the auction event.  See the auction detail page for terms.

Have more Questions?

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View this video for an overview of our onsite auctions