Marcus Real Estate
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The top 10 most frequently asked questions and answers

The Low Unique Bid Real Estate Auction

1.  How does the home get paid for?

By using a low bid format we can attract thousands of bidders into each home auction. A service fee is charged for the use of the home auction service pack to every bidder in every home auction. These fees collected pay for the cost of the home and the services provided. Service fees can vary per home auction but generally range between $110-$250.

 

2.  When and how do I pay the service fee?

Once we have received the required number of placement bids in each auction (Example 2,000-20,000), we send each participant an electronic notification (email) that includes a final registration link. This link provides the terms and conditions, the home auction service pack and a place for you to submit your final bid amount before the close of the auction. At that time you will be redirected to Pay Pal where you can use your Pay Pal account or a major credit card to pay for the use of the home auction service pack.  THE HOME AUCTION SERVICE PACK includes the survey, pest inspection, title work, home inspection, appraisal, seller's disclosure and a 5 year deferred maintenance schedule on the subject property.

 

3.  Where do the all the service fees go?

 Every home auction is unique in nature and accounting. Typically the homes entering into the auction are overleveraged with excessive and growing debt, liens and judgments. The majority of the fees are paid to the seller in consideration of a full pay off and a satisfaction of the note and mortgage. These properties also receive a five star home inspection. Each and every known defect is either repaired or escrowed for at closing for the new buyer. Each property receives a photo shoot, survey, pest inspection, home inspection, preliminary title and exam, seller's disclosure, appraisal and a 5 year deferred maintenance schedule. The additional closing costs covered for the new buyer are recording fees, Real Estate taxes, homeowner's insurance, pool care, lawn care, pest control contract and a home warranty for the first year. The home auction service fees also pay for the real estate, legal, web design, marketing, accounting and special services required to close an auction and perpetuate the global expansion of the same.

 

4.  How does the bidding process work?

You can place an initial sealed bid in the entry form here. Bids are placed in one penny increments between one penny .01 and five hundred dollars 500.00. Example 33.33 (thirty three dollars and thirty three cents) Your initial bid is only a placeholder bid. Once we receive the required number of placeholder bids to close an auction you will receive an electronic notification (email) that includes a place for you to submit your final bid amount before the close of the auction. Final bids can be placed once you have received and accepted the information contained within the home auction service pack. Final bids are also placed in one penny increments between one penny and five hundred dollars. Do not bid more than you can afford, you will be required to place your entire cash bid amount into escrow with our attorneys within 48 hours of notification if you are the successful bidder in the auction. All transactions are cash only.  There is a service fee of $110-$250 for the use of the home auction service pack in each auction. Once all the bids are validated, the auction closes to the public, the bids are tallied and the successful bidder is notified to proceed with their purchase. All closed auction results are also posted online at MarcusRealEstate.com.

 

5.  How many people are in each auction?

The number of required bids varies in every auction. Because you can place more than one bid by using a unique email and user ID for each bid value, the number of "people" required is not relevant. Each auction has a "bid reserve" which is the essential number of bids needed to meet the financial requirements of the home auction. You can determine the number of bids required in each auction by visiting each property's home page or by visiting our place a low bid page.

 

6.  When does the auction close?

The auction closes when the property closes. However the auction does "close to the public" once we have received payment from the required number of bids (the bid reserve is met). Bids and payments are electronically tallied over the course of 3-5 business days and the auction results are posted online at MarcusRealEstate.com. The successful bidder is then notified and has 48 hrs to execute a contract for purchase for that amount and place their entire cash bid into escrow with our attorneys. Depending on the home auction, the successful bidder then has 30-60 days to perform any and all further inspections and close on the subject property.  If the bidder (now the new buyer) fails to do so it is construed as default and  the second lowest unique bidder is then notified to proceed with the purchase. For cash auctions the successful bidder has the same 48 hours to place their entire cash bid amount into escrow with our attorneys, 30 days to select their new Florida home and 30 days to perform inspections and close. The home auction will be placed in a "pending" status until the lowest unique bidder actually closes on the property.

 

7.  What is the lowest unique bid?

Two criterion: 1. A bid amount that is unmatched by any other bidder in the auction making it "unique" in value and 2. the lowest bid amount placed within the auction. So for example if you place a bid for one penny and another bidder does the same, one penny is the lowest bid amount in the auction but no longer unique because it was duplicated. Duplicate bids cancel themselves out and similar to standard high bid auctions bid values increase during the course of the auction. See sample auction results.

 

8.  What are my expenses to purchase the home?

All standard closing costs are covered for the new buyer. Mortgage, lender, additional legal representation, phone, fax and further ancillary expenses (if any) will be the responsibility of the new buyer. See what the service fees collected pay for the new Buyer. 
 

9.  How will I know if I am the successful bidder?

You will be notified by phone and email. That's why it is important to give accurate information when you submit your final registration information. All auction results are also posted online at MarcusRealEstate.com and each closed auction with buyer and seller testimonials will receive its own column in our newsletter. We will find you as long as we have accurate information...we are pretty excited about that part.

 

10. How long does it take to close an auction?

It depends on how many bids are required and the level of marketing a property is receiving. At this time auctions under 20,000 bids required and a mass marketing campaign should take about 30-60 days to reach the bid reserve requirement or the "closed to the public" stage. Remember the auction will not technically and finally close until the successful bidder closes on the subject property which can take an additional 60 days. Overall the more our bidders share this home auction with their friends and family and the more we grow, the quicker we can close auctions and the sooner we can reduce the service fees to our members.

 

The Purpose

This auction format is a solution to overleveraged homeowners that are unable to help themselves out of hardship and debt.

Identical to other home auction formats, only one bidder out of thousands will walk away with the house at the close of each home auction,  yet to keep things affordable, each of you that places a bid will have paid the same nominal fee and be able to bid in the same nominal bid range. You will most likely spend less money purchasing a home this way than the gas it would require to find one on the open market.

By participating in this event you are substantiating the fact that we need a better solution to foreclosure and bankruptcy for all of those homeowners in need of assistance and a strategy to make home ownership affordable again for today's Buyers.

Through your participation in each home auction you can consider yourself supporting the cause as we bring this format into the public eye and achieve global awareness that this format does exist.

It is through each and every one of you that we shall achieve success and further perpetuate this auction format as a solution to Sellers that are rich in debt and Buyers that are poor in advances.

I am sure we all know and love someone who needs this and would like to reach out with a helping hand. Please share your experience here.


Thank you in advance for your Membership


The Home Auction Team
Marcus Real Estate, Inc.

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