Frequently Asked Questions

  • Question: Why do lenders sell foreclosed homes at auctions?
    The mortgage meltdown has resulted in a dramatic increase in the number of homes lenders have taken back as borrowers stopped making payments on their loans. It would take years for lenders to liquidate this inventory through the traditional sales method of one home at a time. Instead, they turn to home auctions where they can sells dozens or even hundreds of properties in a single day, reducing their costs to hold, maintain and market their real estate owned.
  • Question: Why are home auctions so popular with consumers?
    Consumers want a great deal and know that home auctions offer one of the best ways to buy real estate today. You’re in control. You decide exactly what you want to pay on a home and bid up to that amount. No back and forth negotiation, offers and counter offers so common in traditional real estate sales. Auction style bidding means you pay the true market price. Plus, you’ll find a great selection of homes in all price ranges and property types including single family homes, condominiums, townhomes and one-to-four multi-family units.
  • Question: Is there any cost to attend an auction?
    No, there is no cost to register, pre-qualify for financing or attend any GAHA auction event. Certain locations may charge a nominal fee for parking.
  • Question: Can you describe a typical auction day?
    Customers describe our events as fun…exciting…and profitable! Hundreds of people will be lined up by the time registration begins at 8:30 am. A quick stop at registration to check in and pick up your bidder paddle and it’s on to the auction floor for refreshments while one of our experienced staff explains more about how our auctions work and what to expect. The auctioneers get “fired-up” around 9:30 am and then its nonstop action, selling a property on average every 2 minutes. Enough time to comfortably place your bid without being rushed. Depending on the number of properties being sold, the auction will last 3 to 4 hours.
  • Question: Why should I register in advance of the auction?
    Registration is required to bid. And, due to the popularity of our events, advance registration is the only way to guarantee you a seat at the auction. You can register today on our website; it’s simple and only takes a minute. Plus, it’s FREE! There is absolutely no obligation on your part. We suggest registering at least 5 days prior to the auction to make sure you receive any last minute updates or changes. On-site event registration is available space permitting but not recommended. Don’t be disappointed. Register in advance and guarantee yourself a seat at the event. If you plan on attending more than one auction, be sure to register separately for each event.
  • Question: What is the auction process like?
    If you’ve been to any type of auction (art, jewelry, antiques, furniture, autos, etc.,) you’ll find the process very similar. Bidding on a property is easy and fun with no obligation unless you are the winning bidder. Our experienced event staff will be happy to get you registered to bid and answer any questions. In addition, we’ll auction a sample property before live bidding begins to help you become familiar with the process, sounds and pace of the real bidding to come. No previous experience is required to buy property at a GAHA auction event.
  • Question: Is there any limit on the number of properties I can buy?
    No, you can buy as many properties as you like. You will need a $5,000 cashiers check for each purchase with the remainder of the 5% deposit on the first property (15% deposit on each additional property) paid by personal check. We have set aside a special area on the auction floor where you can complete the documentation on one purchase and still actively bid on any additional properties that come up for sale.
  • Question: Can I bring my real estate agent to the auction?
    Yes, your real estate agent or broker is welcome to stay with you through the entire process of bidding, winning the property and signing all necessary documents. They must register on the agents and brokers page of our website and comply with all other terms and conditions to earn their 1% commission upon the successful close of escrow.
  • Question: Do you open the properties for preview prior to the auction?
    Yes, the open house dates for each property are shown on the property details page on the website. You will want to visit and inspect the property prior to the auction so you can make an informed buying decision. Also, be sure to review all related property information and disclosure documents found on the website.
  • Question: Am I responsible for paying any outstanding liens on the property?
    No, free and clear title is guaranteed by the seller. They will clear any outstanding liens before you take title to the property.
  • Question: Are there any lenders at the event?
    Yes, Great American Home Auctions is pleased to recommend several trusted sources of financing and has arranged to have these lenders available on-site at our auctions. Our lending partners offer a spectrum of competitive financing programs and have the proven expertise to get your loan approved and funded even in today’s tight credit markets. You are not required to use an auction approved lender. Whether you decide to use on-site auction financing or your own outside lending source, the choice is entirely up to you.
  • Question: Do home auctions have a 3-day cancellation period?
    No, once the auctioneer closes the bidding, a legal binding contract is established that can not be cancelled by either the buyer or the seller except for legal cause. There is no free look or cancellation period with home auction property.
  • Question: What do I need to bring to the auction event?
    First, be sure to register in advance for each event you plan to attend. To bid, you will need photo identification, a $5,000 cashiers check made payable to yourself and your checkbook to pay the balance of your 5% deposit (15% deposit for additional purchases made the same day.) Also, if you pre-qualified for financing with an approved auction lender, bring copies of the documents requested to jumpstart the loan process and help close your escrow on schedule.
  • Question: Do you charge a 5% commission on every sale?
    Yes, Great American Home Auction charges a standard 5% commission, known as a Buyers Premium, to help offset the costs to promote the auction and inform you of this tremendous real estate buying opportunity. The 5% premium is added to each winning bid to determine the final purchase price. For example, the buyers premium on a property with a $250,000 winning bid would be $12,500 (5% of the winning bid amount) making the final purchase price $262,500.
  • Question: Can I join via a webcast?

    Webcast

    For Buyers who cannot attend the live event (although we strongly recommend that you attend in person), Great American Home Auctions (“GAHA”) offers a live webcast. Buyers can place bids via the internet and participate in the live event from anywhere where there is an internet connection. To join and bid via a GAHA live webcast buyers need to do the following:

    • From the GAHA website, click on the current auction, select “Register Now” and select Webcast. Fill out the information as requested.
    • Buyers must be registered and must have been pre-approved for a loan if financing is needed to pay for a property. You (the Buyer) will be required to show proof of financing.
    • Buyers paying in cash must be registered and must show proof of assets, just like you would if you were attending the live event.
    • Buyers must be registered and pre-approved for a loan or show proof of assets 48 hours prior to the event.

    Once you (the Buyer) register and have been approved to bid in a GAHA webcast auction you will be sent an email containing your bidder information. On the day of the auction, from the GAHA website, click on the current auction and select “Attend Webcast.” You will be prompted to download our proprietary software if you have not done so previously. Problems downloading the software can be directed to Webcast@greatamerican.com Since you (the Buyer) will not be able to present a $5,000 cashier’s check in person on Auction Day, you will be asked to fill out a credit card authorization at the time you register to bid online for a webcast auction. The authorization taken on your credit card will be for $5,000 plus a processing fee of $125. The authorization is NOT a charge. It is simply an authorization that will be processed only if you are the winning bidder of a property and you do not send your Earnest Money Deposit via a wire or a Cashier’s Check with your executed purchase contract. Please see your bank for details on how your bank handles credit card authorizations. It is possible that your bank may withhold these funds for up to 30 days before returning the funds to your account. GAHA does not hold funds where a credit card authorization was taken and GAHA is not responsible for your bank’s policies. A member of our closing team will contact you immediately to arrange overnight delivery of the purchase contract and wire instructions to your home or business. To avoid any charges to your credit card, you (the Buyer) must complete and return the documents within 24 hours of receipt. The documents you return must also be accompanied by your Earnest Money Deposit via 1) a cashier’s check or 2) confirmation from your bank that you (the Buyer) wired your Earnest Money Deposit in accordance with the wire instructions attached to the purchase contract sent to you. Failure to do so will result in your credit card being charged.

    Internet Closing

    In addition to executing and returning the Purchase Contract and sending in your Earnest Money Deposit by cashier’s check or wire within 24 hours, you (the Buyer) must also complete the financing information. If you were preapproved with a GAHA designated lender, you will be contacted within 48 hours of you placing the winning bid.

    The lender will need to update the information about the property you just won and coordinate the delivery of any additional documents needed to close your loan. If you fail to complete the above mentioned procedures you could be subject to liquidated damages resulting in forfeiture of your Earnest Money Deposit. You are required to review the Purchase Contract and the Terms and Conditions prior to the event or prior to bidding online.

  • Question: Can I bid on a property online prior to the auction?

    Online property presale - “Bid on this Property”

    Great American Home Auctions (GAHA) will allow you (the Buyer) to bid on a property prior to the auction. If you registered to bid online, GAHA will email you (the Buyer) in advance to advice you of the date the online property presale feature will be open. The “Bid on this Property” button can be found in the Property Detail screen, and you (the Buyer) may bid on the dates indicated in the property detail screen. If the Seller is interested in your online offer, a member from our closing team will contact you immediately to arrange overnight delivery of the purchase contract and wire instructions to your home or business. You (the Buyer) must complete and return the documents within 24 hours of receipt, in the self addressed overnight envelope provided for your convenience. The documents you return must also be accompanied by your Earnest Money Deposit via 1) a cashier’s check or 2) confirmation from your bank that you (the Buyer) wired your Earnest Money Deposit in accordance with the wire instructions attached to the purchase contract sent to you. Failure to do so will result in your credit card being charged.

    You (the Buyer) must be registered and be preapproved for a loan, or show proof of assets if you are paying in cash prior to bidding online. The property will be removed from the live event only when there is a signed contract by both you (the Buyer) and the seller.

    Since you (the Buyer) will be bidding online and not be able to present a $5,000 cashier’s check in person, you will be asked to fill out a credit card authorization at the time you register to bid online. The authorization taken on your credit card will be for $5,000 plus a processing fee of $125. The authorization is NOT a charge. It is simply an authorization that will be processed only if you are the winning bidder of a property and you do not send your Earnest Money Deposit via a wire or a Cashier’s Check with your executed purchase contract. Please see your bank for details on how your bank handles credit card authorizations. It is possible that your bank may withhold these funds for up to 30 days before returning the funds to your account. GAHA does not hold funds where a credit card authorization was taken and GAHA is not responsible for your bank’s policies.

    Internet Closing

    In addition to executing and returning the Purchase Contract and sending in your Earnest Money Deposit by cashier’s check or wire within 24 hours, you (the Buyer) must also complete the financing information. If you were preapproved with a GAHA designated lender, you will be contacted within 48 hours of you placing the winning bid. The lender will need to update the information about the property you just won and coordinate the delivery of any additional documents needed to close your loan.

    If you fail to complete the above mentioned procedures you could be subject to liquidated damages resulting in forfeiture of your Earnest Money Deposit. You are required to review the Purchase Contract and the Terms and Conditions prior to the event or prior to bidding online.