Preparing for an As-Is Sale Auction Sale
What is a contingency in real estate?
A contingency in real estate is a clause that accounts for a specific circumstance or event and stipulates what may happen as a result of that unforeseen occurrence. Since public auction sales are typically selling the property in as-is condition, there is often an absence of contingencies. As a result, buyers are often granted time and opportunities to perform their due diligence in advance of placing a bid on the property.
Typically? Does this mean there are exceptions?
Does this mean you have to have the full purchase price with you on auction day?
We kindly remind buyers to perform their due diligence. Consider the total purchase price and related fees before placing legally binding bids. In the event that a buyer cannot settle in a timely manner, they will be at risk of breaching their contractual agreement.
If you are considering the use of a conventional loan product, please be sure to discuss the terms of the sale with your lender. Many auction properties do not immediately qualify for conventional loans. For example, a lender may require that the property pass a home inspection, but the property may not pass because the utilities are turned off. Be sure to perform due diligence in understanding what requirements your lender may have, if one is involved, and be prepared with a backup plan.