is my first auction and I'm not sure how to bid?
Step 1 - Register to bid by filling
out a bidder card at the registration table.
Step 2 -
Determine how much you are willing to pay for a piece of property. Since
your needs and desires are unique, your evaluation of the property will be
different from anyone else's.
Step 3 -
As the auctioneer progresses in his call for bids, simply raise your hand
when you want to bid. If you're not sure if you're in or out, raise your
hand again and the auctioneer will keep you in. He will not let you bid
Step 4 -
If you have any questions motion for one Interstate Auction Company's
Auction Team members. These ringmen are here to help you understand the
does the term ``reserve" mean?
Under a reserve auction the auctioneer will submit the highest and
best bid to the seller. The seller has the right to accept or reject that
does the term ``absolute" mean?
Absolute means the property will be sold to the highest and best
bidder. There are no minimums or reserves.
Some auctions will have certain parcels to be sold absolute while others
are offered with reserve. Please check with the Auction Team for the
details of any particular auction.
need to pre-qualify?
No. We normally do not require any pre-qualification to bid;
however, if you intend to obtain bank financing the bank will require you
to qualify for their loan. The deposit you make on auction day is usually
not contingent upon financing. In some cases the seller will provide
does the phrase "dollars per acre" mean?
Many times a property is sold ``by the acre" or ``by the
square foot". This means you are bidding on one acre. The purchase
price will be your ``bid per acre" multiplied by the number of acres
in the parcel.
Ex. Assume there is a 5 acre parcel. You are the high bidder at $20,000
per acre. The purchase price would be $100,000 (5 x $20,000). The same
process applies when selling by the square foot. Remember there are 43,560
sq. ft. in one acre.
Check with a member of the Auction Team to find out how any particular
property will be sold.
is a buyer's premium?
A buyer's premium is an amount of money, usually a percentage,
that is added to the bid price to determine the total purchase price.
Ex. Assume there is a 10%
buyer's premium. If you bid $75,000 on a property, then the total purchase
price would be $82,500 ($75,000 plus $7,500 buyer's premium).
deposit a part of the total purchase price?
Yes. Using the same property as above. The total purchase price is
$82,500 and the deposit required is 10%. Your deposit amount would be
$8,250; the balance remaining would be $74,250. ($82,500 X 10% = $8,250
deposit ╬ $82,500 total price - $8,250 deposit = $74,250 balance)
The most important thing to do
at an auction is relax and have fun. If you have a question, Ask It. We
strive to insure that all of our customers are fully informed and