Auction FAQs

AUCTION FAQs

How long does the auction process typically take?

The auction timeline is clearly defined by the seller and auctioneer for each property being offered at auction. The auction process usually takes 4 to 6 weeks from start to finish. Closing typically occurs within 30 days or less from the date a sale is confirmed.

What is an absolute auction?

An absolute auction is one in which the seller agrees to sell the property to the highest bidder, regardless of price. Absolute auctions are also known as auctions "without reserve."

What is a reserve auction?

A reserve auction is one in which the seller reserves the right to "confirm" (accept or decline) the highest bid within a specified period of time. This is also what is meant when an auction property is "being sold subject to seller confirmation." A "minimum bid" (or minimum acceptable price) may or may not be disclosed to bidders. Unless otherwise specified, all auctions are reserve auctions.

What is a sealed bid auction?

A sealed bid auction is one in which bidders submit confidential bids to the auctioneer to be opened by the auctioneer at a predetermined place and time.

What is a sealed bid/open outcry auction?

A combination of sealed bid and open outcry auctions are often conducted; in these hybrid auctions the bidders who submitted the highest sealed bids are invited to compete in an open outcry auction that allows them a final opportunity to place the winning bid.

What is an "As is, Where is" sale?

When a property is sold in "as is" or "as is, where is" or "as is, where is and with all faults and limitations" condition, it is being sold with no representation as to the condition of the property or its fitness for a particular use, no warranty or guarantee is being implied, and no inspection or other contingencies apply. The buyer is solely responsible for inspecting and examining all aspects of the property prior to placing a bid on the property.

What is earnest money and when is it due?

Earnest money is a deposit toward the purchase of the property the buyer makes to demonstrate that he or she is serious or "earnest" about the purchase of the property. Earnest money is typically due within 24 hours of when the winning bidder is declared. Refer to the Auction Terms and Conditions in the Property Information PDF for each particular property on which you plan to bid for more detail.

What is a "buyer's premium"?

A buyer's premium is a percentage of the winning bid that is added to the winning bid to establish the total purchase price. For example, if the buyer's premium is 10% and the winning bid is $100,000, the buyer's premium is $10,000 and the total purchase price is $110,000. We use the buyer's premium to pay for some or all of our auction marketing expenses as well as the cooperating broker commission we offer to buyer's brokers. Refer to the Auction Terms and Conditions in the listing page on our website (www.svnauctionworks.com) and the Property Information PDF for each particular property on which you plan to bid for more detail.

When should I register for an auction?

Bidders should register as soon as possible. Registering to bid does not obligate you; it simply gives you the option to bid.

Where do I register?

You may register online at www.svnauctionworks.com. If you are having difficulty registering online, please contact us by phone (312.756.7333) or email (info@svnauctionworks.com). After you have registered, we will notify you when your registration has been approved. Once you have received our approval, you may bid.

When should I place my bid?

We recommend placing your bid with us pre-auction. Many of our properties sell pre-auction and are no longer available on auction day. If you do not place a pre-auction bid, you may bid on auction day at the prescribed time and place for the auction of the particular property. Refer to the property listing page on our website (www.svnauctionworks.com) and the Property Information PDF for details.

When should I place my bid online?

If you are placing a bid online, note that our online auctions start and end at the times clearly shown on the listing page on our website ( www.svnauctionworks.com) and in the Property Information PDF for the property. Please be careful to note that all times are expressed in Central Standard Time (CST). If you are in a different time zone, you will need to convert your local time to Central Standard Time.

Do I need to inspect the property before I bid?

We recommend all bidders inspect the property and complete all due diligence before placing a bid on the property. All of our auction properties are sold "AS IS, WHERE IS, AND WITH ALL FAULTS AND LIMITATIONS."

When can I view the property being auctioned?

Our auction properties are available for on-site inspection at specified times. Refer to the property listing page on our website ( www.svnauctionworks.com) and the Property Information PDF for each particular property that interests you for more detail. If you have questions, please contact us by phone (312.756.7333) or email (info@svnauctionworks.com).

Should I consult an attorney before I bid?

We recommend all bidders consult an attorney and examine all matters relating to the property prior to placing a bid on the property.

Is financing allowed?

While financing may be allowed, depending on the seller, there is NO FINANCING CONTINGENCY. If you plan to finance your auction purchase, we recommend you first contact us to learn more. If financing is allowed for a particular property, we recommend you get pre-approved and consult in depth with your lender as far in advance as possible.