First I didn’t need to give the deposit to participate in bidding. However if you win the bid you must give the deposit for them to accept your bid. You can also participate via online bidding, where you first must give a credit card and get registered.
– The deposit is 5% or $2,500 deposit, whichever is less
– There is a 5% buyers premium
– Buyer has 35 days to close on the property
– Seller has 1st right of refusal up to 14 days
– Seller pays title insurance, back taxes and liens
– Buyer gets a clean insurable title
– Property conveys “as-is”, no inspection contingenices
– Contract is not assignable
There was a good amount of people there and some properties were being bid up to prices higher then a savvy investor would pay. It was clear that emotions got involved and perhaps people paid more than originally planed.
Most homes auctioned of, were out of my area and I didn’t buy anything. But it was an interesting experience.