Frisco, TX · Member since 2014 · 23 posts · 3 votes
Found a home going up for auction. Property company says requires 5% fee plus credit card hold of 2500 for bidder. Is this normal. I am newbie so assuming the bid is taken how do I ensure home has a good title etc? Looking for guidance on this.
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
12y
Most live auctions require a deposit, usually in the form of a cashiers check, often for a lot more than $2500. So it just being a credit card hold is actually a good deal. If you win you pay a "brokers premium" or "auction premium" which can be up to 10% of the final bid price (so again, 5% seems pretty good). This fee is how the brokers/agents get paid, similar to an agent's commission on a regular sale
I have only participated in one auction, and in that case the seller was providing title insurance. I know that's not always the case. You'll need to check with the auction house and get whatever info/disclosures they have. If it's a property you really want it might be worth paying for a title search before the auction