Terms & Conditions

Interested parties can find the terms and conditions for the sale and disclosures for the property on each property details page. The Terms are obligations to participate in the auction, down payment requirements for the high bidder, and time in which full payment must be made. This can vary greatly by state, seller, or auction type, so review the terms thoroughly before bidding.

Inspections & Appraisals  

Unless otherwise stated, all properties are sold “As Is, Where Is,” meaning the purchase cannot be contingent on inspections, appraisals, or the ability to get financing. We encourage bidders to conduct research before bidding. Most vacant properties can be accessed by a licensed real estate agent, home inspector, or appraiser. Please have the licensed professional contact Customer Service at 888.825.7371 

Reserve and Non-Reserve Auctions 

Unless otherwise stated, all auctions are reserved and subject to seller acceptance. Seller reserves are confidential.  Sellers reserve the right to accept an offer below the reserve. All bona-fide bids are highly encouraged at the auction.  

 

Before the Auction 

Preparing for the Auction 

The Auction process moves quickly, pre-auction due diligence can make the transaction go smoothly and avoid costly surprises. Pre-auction due diligence can include: 

• If the property is vacant and access is available, complete onsite inspections before the auction. Complete due diligence to estimate costs for repairs or replacements needed to align with bidding strategies. 

• Plan how to take title to the property. This question will be asked immediately after the auction so that the non-assignable purchase contract can be prepared. 

• Funding must be in place.  A down payment is required immediately following the auction (see individual property details for amount), and the remaining balance is due within 30 days. Wiring instructions to transfer funds are provided, and the funds placed in an escrow account. If a lender is involved, they will want to see the purchase contract right away.  

• Register to bid early! The process is easy, but don’t wait until the last minute. Bidders need to set up an account on Homesail and register for the property you want to bid on. A credit card must be provided to verify identity.  NOTE: It is important to review the terms and conditions to bid on the property, If the property requires a pre-bid deposit, the card will be charged. 

During the Auction 

Online Auctions generally last 3 days. Bidding starts as soon as the auction opens on Day 1. The website shows the current high bid and if you are the current high bidder.  

Bidders have the option of placing a proxy bid for the maximum bid on a property. The system bids in set increments up to the max bid when another bidder has the high bid. If the property goes beyond that preset maximum, the bidder can still manually place a bid above the preset limit. 

Bidding can sometimes pick up momentum in the final hours or minutes, so stay alert and be ready to jump in if another bidder has the high bid. Once an auction is within 3 minutes or less of closing, a special countdown begins to reset the clock to the 3-minute mark when a bid is placed, extending the closing time

After the Auction 

The account of the winning bid will receive an email with a digital questionnaire that is required to be filled out so that auction clerks can create the purchase contract and for signature. Some of the required information includes the name the property will be titled, the source of funds, and if the property will be owner-occupied or not.  

A purchase contract will be sent via DocuSign to sign and initial digitally. This is when the wire transfer of the earnest money down payment is required. Instructions will be provided based on if the deposit is a wire transfer or bringing a physical check.   

During the closing process, Homesail team members will stay in touch with the buyer, the seller, and the title company to help expedite the process and keep it on track. Additional required documents, including entity/LLC documents, proof of signing authority, a copy of government issued ID, and confirmation of earnest money payment will need to be provided prior to closing. Once a fully executed contract is in place along with confirmation of the earnest money, a Closing Manager will make contact and walk through the entire closing process step by step until the property has closed and funds have been disbursed. 

Auction Q&A 

Why are some properties labeled for sale to Owner Occupants only? 

Beginning Aug. 1, 2022, HUD implemented a change to expand access to home ownership to low- and –moderate income home buyers by giving them an exclusive 30-day period to bid on HUD single family homes post foreclosure. Buyers eligible to bid during this period must be individuals or families who will occupy the home, HUD approved non-profits, or governmental agencies. If the property is not sold after the first 30-day period, or if that transaction does not close, the property will be made available for all buyers to place bids and the website will be updated to show this. 

Is the opening bid the reserve? 

Unless it is stated as such, the opening bid is not the seller’s reserve. It is simply a starting point to open the bidding and is not indicative of the reserve or value of the property. 

Can I make a pre-auction offer? 

Most sellers allow and even encourage pre-auction offers. Call our Customer Service desk to get the process started at 888.825.7371 

My password isn’t working, how do I reset it? 

Find the Sign In button at the top of the home page screen and type in the email you used to create your account in the Forgot Password field. After you click retrieve, check your email for a temporary password to use to sign in.  

How do I register to bid? 

Once you’ve logged into your account, go to the property you want to bid on and click on the Register to Bid button. You will input some information and agree to the terms and conditions and enter a credit card for identification purposes. Now you’re ready to bid! 

Why do you need my credit card to register to bid? 

Your credit card is used to verify your identity. The verification is performed by Authorize.net, a subsidiary of Visa, and the card information is not retained.  

Do I need a real estate agent? 

Working with a real estate agent is your choice. In some cases, you will only be able to access vacant properties with a licensed agent assisting you.  

Can my real estate agent bid for me? 

Only with a power of attorney can the agent bid on your behalf, but keep in mind that because they are registering and placing the bids in their name, they will be responsible for any damages if you, the buyer, default on the purchase contract.  

What if the property I want to buy is occupied? 

The sellers require that the occupants not be disturbed during the auction period. If you are the accepted high bidder, upon closing, you will be able to negotiate with the occupants a rental agreement or evict.  

Will I receive clear title to the auction property? 

Most properties are transferred by deed prepared by the seller (i.e., Special, Bargain and Sale, Quit Claim, Trustee's, etc.) with insurable title as determined by the title company indicated on the contract. A customary owner's title insurance policy is issued for each property. The cost is included in the average closing costs.  

What is a Buyer’s Premium? 

The Buyer’s Premium (it’s called a Buyer’s Fee in the state of WI) is paid by the buyer and used to compensate the real estate broker representing the buyer and/or the broker or auctioneer representing the seller.