Bidder's FAQ's

1.

What expenses, besides normal closing costs, does the successful bidder incur?

The buyer pays a “buyer's premium” of 1% over the highest bid, or other per centage as indicated in the auction seller terms.  For example, if the highest bid is $200,000 and the buyer's premium is 1%, the buyer's premium amount is $2,000 ($200,000 X 1%), making the total bid price $202,000.   Be sure to include this fee in your bidding strategy.

2.

Who pays closing costs?

The buyer is responsible for traditional closing costs associated with the mortgage and title company fees as indicated on the Good Faith Estimate.

The seller pays traditional closing costs associated with the transfer of title including, but not limited to: title insurance, title company fees, and state tax stamps.

Property taxes are prorated as of the date of closing.

3.

Will I be able to see competitive bids?

Yes, ByAuctionOnly uses the “open bidding" model which displays the most recent bid.

4.

What is the property closing process?
 

The following steps will occur immediately after bidding is closed:

• The highest bidder will be contacted by ByAuctionOnly within 24 hours to complete the purchase and sale agreement. The terms are those outlined in the “Sale Terms and Conditions” for the specific property.
• The Purchase and Sale Agreement is presented to the seller for signature.
• The highest bidder is required to obtain mortgage pre-approval by BancPlus Home Mortgage Center within 48 hours of the completed Purchase and Sale Agreement or produce a pre-approval letter from their lender of choice.  
• The mortgage application must be completed within 5 days of the completed agreement. 
• ByAuctionOnly manages the transaction through to closing keeping all parties updated on progress via our on-line transaction management system.
• Closing will be scheduled by the Title Company at which time buyer and seller sign closing documents and transfer title.   Mail away closings may also occur. 

5.

Does the seller have to sell the property at the highest bid?

The seller is under contract to sell the property at or above the "reserve” price set by the seller.   If the reserve price is not met, the seller does not have to sell.

6.

What is required of the bidder in a ByAuctionOnly auction?

The Bidder:

• Registers to bid on ByAuctionOnly.
• Selects the property to bid on and becomes familiar with the property description and the terms of sale.
• Inspect the property during the designated time frames.
• Bid on the property.  Monitor bids and continue bidding until you are the highest bidder!
• As the highest bidder you are expected to be pre-approved by BancPlus Home Mortgage Center within 24 hours of the signed Purchase Agreement or provide a qualified pre-approval letter from your lender.
• Apply for your mortgage within 5 days of the signed Purchase Agreement.  You may use any lender you choose.
• Cooperate in providing required information to close the transaction.
• Close the transaction in a timely manner.

7.

Am I required to use BancPlus or my mortgage?

No, you may use any lender you choose.  However, BancPlus is extremely competitive and may offer incentives from time to time.  In addition, BancPlus works well with ByAuctionOnly, allowing the transaction to be processed in the most streamlined, expeditious manner.