Buyers

Buying a property at auction is simple; all you need to do is know in advance that this is the property for you, and how much you are willing to pay for it.

WHY SHOULD I BUY AT AUCTION?

  1. Committed Sellers:
    We only bring properties to auction if the seller is committed to selling the property at the auction.
  2. Our Complete Information Package:
    You only bid after having done your due diligence.  Consequently, the number you offer is a fully informed one.
  3. There Is No Risk of Overpaying:
    Unlike traditional real estate negotiating in which the price offered by your competition is not clear to you, at the auction you see plainly what other buyers are willing to pay.  This means that the successful bidder pays fair market value.
  4. You See the Accepted Offer for Yourself:
    After the offer is accepted you have seen for yourself that you have been treated fairly.  There are no third party representations.
  5. No Drawn out Negotiation:
    Once the hard contract is signed on the day of the auction, you know the property will be yours.  This is especially good for those of you with deadlines.

Buying a property at auction is simple; all you need to do is know in advance that this is the property for you, and how much you are willing to pay for it.

Because you will be signing a hard contract, you want to make sure you study the information package because you need to know the procedure for the auction. Take time to do your due diligence so you know what you are buying.

Because of our buyer’s information package you can bid from the position of knowing the truth about the property in advance.

We provide opportunities to inspect the property and to review all legal and financial materials with all disclosures.

By the time of the auction the serious bidder will have the opportunity to bid with the certainty that he has had opportunity to exhaustively study the property.

The auction is completely transparent. The highest bidder gets the property.

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Buyer’s FAQ

Is it possible to get a bargain at auction?

Absolutely. However, keep in mind a “bargain” is like “beauty” it is in the mind of the beholder. One person might say,“That guy is nuts to pay $800,000 for that big chunk of ground.” While the buyer is thinking, “I just got a bargain at $800,000, I’m going to subdivide and develop for a nice profit”.

You can get great value buying at just one bid over the next interested party. But, don’t be fooled by those late night television shows that promise that you can make a million dollars buying property dirt-cheap. It might be possible to buy a skyscraper for $1, but you must have it torn down and removed by the end of the week!

What is a bid contract?
The successful bidder is required to sign one of Bonnette Auction Company’s Bid Contracts at the conclusion of the bidding. The contract has the description of the property that he bid on, the bid, the Buyer Premium, the total with Buyer Premium and his bid number. This form verifies that the bidder agrees that he is the high bidder.
How do I bid in the live auction?
Simple, just signal the Auctioneer or one of the bid assistants to start or participate in the bidding. It is best to use your bid card to get attention. After the auctioneer/bid assistant has acknowledged your bid they will be watching for subsequent bids. If you are the successful bidder, hold up your bid card so that they can record your bid number on the Bid Acknowledgment Form. If the bidding exceeds your limit, simply nod your head “no” and the auctioneer/bid assistant will look elsewhere for bids.
Can I make an offer prior to auction?
Absolutely. We will submit the written offer on the Purchase & Sale Agreement to the seller for acceptance. Of course the Terms and Conditions of the auction will be adhered to. We recommend that you make your best offer at this time.
Do you start the bidding with my Absentee Bid?
Yes, the total absentee bid on real estate, according to Louisiana State law, must be submitted in its entirety. In other words, if your absentee bid were $100,000, your bid would be submitted as $100,000.
Do I have to attend an auction to bid on a property?

No, there are two ways that you can participate.

  • You could send someone to the auction to bid on your behalf that you have granted limited Power of Attorney to (consult attorney).
  • Further, you may bid by utilizing an Absentee Bid Form. This form must be filled out with your personal information for proper registration. Absentee bids must be accompanied by the proper down payment for the property of interest along with signed Terms & Conditions, a signed Purchase & Sale Agreement complete with the total bid offer.
How and why do I need to register?

Registration is a process of identifying yourself in our system as a potential buyer. If you want to participate in one of our auctions you will need to provide some form of positive ID such as a drivers license.

You will need to sign the standard Terms and Conditions for the auction and provide the stated down payment amount for the property of interest in guaranteed funds. You will receive a bid card with a number, which is used to identify yourself as the successful bidder. You will also be provided a Bid Packet with copies of the Terms and Conditions, Purchase & Sale Agreement, and information on the property that you are interested in.

Once you have registered you are in our database and eligible to bid.

What are previews?
Previews are exhibitions of property to be auctioned, offered free to the public by appointment. The Preview is an opportunity for buyers to examine closely individual properties prior to the actual auction. It is strongly recommended that all buyers preview properties prior to bidding. Bonnette Auction Company encourages you to bring your contractor, home inspector or buyers’ broker with you for inspections.
What do you mean by insurable title?
If a Louisiana State title insurance company will insure the property at closing, the Seller has completed their obligation to you. All Bonnette Auction Company property auction offerings are sold with good, insurable titles and no liens, judgments, mortgages, or back taxes. If the title cannot be cleared, your down payment is refunded.
What do you mean by due diligence?

Bonnette Auction Company will provide you with the information that is available from the seller on each property. However it is your responsibility to satisfy yourself that all information is accurate and to your satisfaction.

  • You might want to check with the local municipality to verify taxes, zoning and get a copy of the deed or tax map.
  • You might want to walk the property to inspect the “lay of the land”.
  • You might want to have professional inspections done of the improvements.Typically, you are buying the property as, is without contingencies. The Seller will provide insurable title free of adverse liens by closing. Therefore, you should do your homework prior to bidding.
I have never attended a real estate auction before. What should I do?

If you are interested in buying at any Bonnette Auction Company real estate auctions you should read all the answers to these FAQs.

  • You should subscribe to our e-mail list to get listing of upcoming real estate auctions.
  • Obtain a listing all properties in the real estate auction.
  • Call your lender and pre-qualify.
  • Preview all properties of interest.
  • Check out the values in the neighborhood and set a range of value or limit for your bidding.
  • Be prepared to bid to your limit.
  • Review the Terms and Conditions of the auction you are interested in.
  • Do your due diligence on the property.
  • Arrive early at the auction site to register to bid and get to know the auction staff.
  • Ask questions about properties of interest prior to bidding.
  • Determine what the property is worth to you and then bid confidently to obtain it.
  • Get comfortable and relaxed.
  • Listen closely to the auctioneer.
  • Don’t be bashful or you might miss a great buying opportunity.
  • Once you are successful, sign documents and your on your way to closing.
Why should someone sell real estate at auction instead of pricing it?

Auctions are fast, efficient and produce fair market value. When a property is “priced” it is either under priced or overpriced. Either way, the seller loses. If the price is too low it sells quickly but equity was lost. If the price is too high the property does not sell. It then has to be advertised again at a lower price or negotiated through negative haggling with one person at a time.

The auction creates a sense of urgency. All serious people are brought together to compete. The seller is assured of fair market and so is the buyer that obtains the item at one bid over the next interested person.

Are there different kinds of real estate auctions?
Yes, auctions can be Absolute, Subject to Confirmation, with Reserve, or with a Stated Minimum.
What does Absolute Auction mean?
A property that is sold at Absolute Auction means that it is selling to the highest registered bidder regardless of price. There is no minimum and the seller cannot reject the highest bid attained at the auction.
What does Subject to Confirmation mean?
It means that the property is being offered to the highest bidder subject to the seller accepting or rejecting the bid. Most Bonnette Auction Company auctions are offered subject to seller confirmation.
What is a Reserve Auction?
It is similar to the subject to confirmation auction, except there is an undisclosed reserve dollar amount set by the seller. The property cannot be sold unless the bidding meets or exceeds the reserve.
What is a Stated Minimum Bid Auction?

An auction where the Seller announces the reserve or minimum bid and generally will sell the property absolute at or above the stated minimum.

Example: This property shall sell at absolute auction at or above a minimum of $41,237. If any one bids the stated amount or more the property will sell.

I have not seen a real estate auction before. Can I come to an auction to watch?
Absolutely, we encourage anyone to attend and watch the bidding. You will be entertained and amazed at the process. Best of all, it’s free.
What is a buyer's premium?
A Buyers Premium is that portion of the commission paid by the buyer. The Buyers Premium is added to the bid to become part of the total sale price.
Whta is a bid assistant?
A staff member, usually one of the auctioneers not currently selling, that is watching the crowd for bids. Sometimes called bid spotters or ringmen, they are extensions of the auctioneer. Often it is difficult for the auctioneer to see all the bids coming from a large crowd in a big room. The bid assistant listens to the “chant” of the auctioneer and scans the room for the current bid. If a bid assistant yells out “yup”, then the auctioneer knows that he has the current bid being asked for and will proceed to ask for the next bid.
Where does the bidding start?
Anywhere the auction audience wants to start it. An auctioneer might ask for $100,000. to start. If no bid he will drop the asking increment until someone starts. The property might start at $25,000 and soar to $400,000 or end at $50,000 based on market value.
When and where does the closing take place?
Bonnette Auction Company recommends 30 Days for closing. However, some sellers opt for 30 or 45-day closings for their auctions. The closing is usually at the Buyers attorney’s office or at the office of the lending institution.
Is the closing any different than any other real estate closing?
No, the closing is the same. The main difference between private treaty selling and the auction method is how the price is arrived at. Once the auction is over your attorney and the attorney for the Buyer get together and arrange for the closing in the customary manner.
What happens if the high bidder fails to close?
Bonnette Auction Company immediately notifies the backup bidder in order to secure a new Purchase & Sale Agreement. If not, the property is made available to other registered bidders and the open market and the Buyer forfeits his deposit.
What is market value?
Fair market value is the price for which a property will sell on the open market between a willing buyer and a willing seller neither being under compulsion to buy or sell as of a specific date. Generally, it is the price that a property will fetch at a well-advertised auction. Factors that come into consideration are location, age, condition, quality, size and desirability. Auctions are the last niche of the free enterprise system where the laws of supply and demand prevail.
What is high bidder’s choice and when is it used in a real estate auction?
Properties that are similar (such as residential lots) may be sold using the high bidder’s choice method. The high bidder may select from all of the lots in the group, and choose more than one. Of course, if the bidder chooses three lots the bid is multiplied by three. In order to have the opportunity to choose your lot, you must compete and become the winner.
What does by the acre mean?

Land parcels are often offered by the acre. The winning bid price is multiplied by the number of acres to arrive at the price.

Example: 150 acres at $500 per acre = $75,000.

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