Rbuy - Online Real Estate Auction

Buyer
How To Bid

The Listing

1. Registering

All buyers must register to bid. You can register anytime, or the listing agent can register you when they approve you to bid. Registering is free and you only have to do it once. When you register, you will create a Username and Password that you will use to make your bids. You can change your password anytime. Keep your password private and safe. You can elect to be notified by e-mail when a higher bid is received.

2. Inspecting the Property

Contact your agent or the listing agent to inspect the property. The listing agent's telephone number and e-mail address are on the listing. The listing agent can answer any questions you or your agent have about the property and the auction.

3. Getting Approved to Bid

All buyers must be qualified financially and have a loan commitment if they are not paying cash. They must be approved to bid by the listing agent. The listing agent will provide any help buyers need in bidding or obtaining financing. That's their job.

4. Viewing the Bids

To view the bids, press "Currents Bids" on the listing form. You will see the initials of each bidder, their city and state, the date and amount of their bid. Bidders' names and addresses are not disclosed. Only the listing agent has access to this information. It avoids collusion.

5. Make a Bid

Press "Make a Bid" on the listing form and enter your Username, Password, and the amount of your bid. The minimum amount you can bid is the amount of the last bid increased by the increment. You can, however, bid as much as you wish and you may increase your bid as often as you like. Within a few seconds after bidding your bid will be listed on the "Current Bids" list as the highest bid. When you register, you can elect to be notified by e-mail when a higher bid is received.

6. Automatic Bidder

If you do not have time to follow the bidding, enter your maximum bid in the "Automatic Bidder" and it will bid for you. It will increase your bid by the increment amount after each higher bid until there are no more bids and you win, or the bids reach the maximum amount you have entered. The "Automatic Bidder" will notify you by e-mail when your maximum bid has been exceeded.

7. End of Auction

The auction ends at the specific time indicated on the listing unless there is a bid in the last ten minutes, and then the auction is extended for ten minutes. It is during the final minutes of an auction that bidding can become intense. You should be present at this time to protect your bid.

Auction Types

The Reserve Auction

A Reserve Auction is an option selected by the seller. The seller enters a "Reserve Price," which is the minimum price he is obligated to accept. This price is not disclosed to the public. The Reserve Price is a safety option that protects sellers from selling below their minimum acceptable price. Rbuy recommends you enter a Reserve Price.

The Absolute Auction

An auction without a "Reserve" price is called an "Absolute Auction." The property is sold at the highest bid without reservations. Some sellers prefer the "Absolute Auction" because they think it attracts more bidders. However, it is very risky and Rbuy recommends that auctions have a Reserve Price.

An Auction's Status

Coming

Before the date bidding begins, the status of the auction is "Coming." This gives notice that the property will be auctioned. Typically, bidding starts within a few days of the "Coming" notice. Some properties are available for inspection during this period.

Bid

When the listing is available for bidding, the status is "Bid". Buyers may inspect the property and bid as soon as they are approved.

Sold

Once the auction ends and the highest bid equals or exceeds the "Reserve Price," the listing's status is shown as "Sold."

Unsold

If the highest bid does not equal or exceed the seller's "Reserve Price," the status of the property is "Unsold." Not all properties will sell within their initial time period. This does not mean that there is anything wrong with the property. It usually reflects the market at that time, and that some properties take longer to find the right buyer. Rbuy recommends that residential properties auctioned in two week periods. If it is not sold, it can be extended in increments of one or two weeks until sold. This avoids impulse buying due to the pressure to make an quick offer and gives the buyer time for research and to decide the amount to bid.

The Mediator

If you are the highest bidder and you still want the property, but your bid did not equal or exceed the seller's "Reserve Price" when the auction ends, the sale is not lost. The listing agent can suggest that the bidder and seller use the Mediator to reach a compromise price as an alternative to continuing the auction.

"The Mediator" is Rbuy's innovative electronic negotiation program that helps the buyer and seller to quickly reach an acceptable price without leaving their computer. Sometimes the bidding is not aggressive enough to require the highest bidder, who wants the property, to bid high enough to reach the Reserve Price. The Mediator helps the buyer and seller reach a sales price that is acceptable to both. The listing agent must execute the mediator.

Additional Information

Help is Available

If you have a question, contact the listing agent or Support. Don't let your inexperience or unfamiliarity with online auctions keep you from bidding on a property.

Caveat Emptor

Rbuy recommends that sellers supply a "Home Inspection Report," a one year "Home Warranty," and any information that will reassure buyers on the condition of the home. Of course, a buyer may obtain his own inspection report before bidding. For 'Investment" properties, a "Due Diligence Report" is usually provided by the seller.

Most traditional auctioned real estate is offered "As Is." However, Rbuy doesn't consider "As Is" a good marketing strategy for the typical owner occupied home. It may be appropriate for foreclosures and houses with absentee owners who can't attest to the condition of the home.

An auction is a final sale and can't have contingencies. This can mean that what you see is what you get. Agents run their auctions with the highest degree of integrity and provide buyers all the information they have about the property. Although Rbuy thinks it is good marketing strategy to remove any questions about a homes condition or else openly disclose it with the cost of repair, it is, however, the buyers' responsibility to satisfy themselves before placing a bid. Don't hesitate to discuss any questions you may have with the listing agent.

Rbuy makes no representations as to the accuracy of any information provided by the agents and sellers, and the probability of success or failure of any property auctioned through Rbuy.

A Bid Cannot be Rescinded

Remember, once you enter a bid, it cannot be rescinded. It is a binding legal contract between you and the seller in which you have indicated that you are ready, willing and able to purchase the property if you are the successful bidder.

Be Prepared

Rbuy's online auction gives buyers the freedom from having to make snap decisions and rush into a purchase. The traditional method of selling real estate is typically sold on a first come-first served basis. The first buyer to make an offer is usually gets the property. Rbuy's online auction is different. If buyers see a property auctioned on Rbuy, its typically listed for a period of days or weeks. Buyers dont have to be first to make an offer on the property; they just have to get back before the auction ends. They have time; time to find a the right house, time to inspect it, time for research and time to decide how much to pay. It's a safer way to buy a property.

However, before you bid, be prepared. Do your research. Know what your maximum bid will be. Be sure you know when the bidding is scheduled to start and end. Read the "Terms and Conditions" on the listing and discuss it with the listing agent if it is not clear to you. It is customary for auctions to have a "Buyer's Transaction Fee." This is one way the cost is shared between the buyer and agent. That is a percentage of the final bid price that is added to it and becomes the auction's final price. If there is a Buyer's transaction fee, Rbuy's bidding program will show total amount of each bid as if it was the highest bid. Don't let this affect your bidding. Just take this fee into consideration when you bid so that it is not an additional cost. Consult with the listing agent if you have any questions. They'll be glad to help you. Again, that's their job and they want no surprises when the property sells.

Deposit Requirements

An auctions usually requires a deposit before bidding. The amount is shown on the listing. When the listing agent approves you to bid they will let you know the amount of deposit required if there is one. The listing agents will instruct you on how the deposit is paid. When the auction ends, deposits are returned to losing bidders.

Buyers Control the Price They Bid.

Each time a higher bid is registered, you must decide whether or not to continue bidding. There is no pressure for you to bid. Other desirable properties maybe available to consider. The agent and seller want you to be satisfied with your purchase. This method of marketing is not intended to be a win-or-lose game. It is a marketing method that allows buyers to purchase the property they want at the fair market value.

However, it is important to understand that the value of real estate is very subjective. A high price to one buyer can be a bargain to another buyer. Economists agree that what competing buyers are willing to pay, under no pressure to buy, is the best and only indication of a property's true value. The online auction is acknowledged as the best pricing mechanism for selling a property at its fair market value.

The Winning Bidder - Confirmation

If you are the winning bidder, you are required to contact the listing agent within 24 hours after the close of the auction to confirm the sale by executing the customary sales agreement with the balance of the deposit. The listing agent may contact you, but it is your responsibility to be available. Failure to confirm the sale and execute a sales agreement can cause the next highest bidder to be selected. This does not, however, relieve you of any legal responsibilities you have to the seller for damages.

The Closing

The listing agent will assist you with the closing if you do not have an agent. The closing follows the customary closing procedures when a property is transferred. The closing date preferred by the seller is listed in the "Terms and Conditions" of the listing. Any other date must be agreed to by the seller prior to the buyer's bidding. It is the listing agent's desire to expedite the closing and make this process as convenient as possible for both the buyer and seller. If you have a problem with the closing date, discuss it with the listing agent before you bid. Reasonable closing and moving dates can usually be accommodated.

Your Own Agent

Although a buyer does not need an agent to bid, Rbuy recommends that you hire your own agent to represent you if you are a first time buyer. Remember, the listing agent represents the seller's interest, although it is in their interest to see that you are dealt with fairly. It's the listing agent's job, and good business practice, to see that you have all the information needed to make you comfortable bidding on their listing.

Good Luck!