About Our Auctions
Auction Strategies
Absolute Auction - In an absolute auction, the property sells to the highest bidder regardless of price.
Reserve Auction - In a reserve auction, the seller can accept, reject or counter the highest bid.
Sealed Bid Auction - In a sealed bid auction, written offers are mailed and opened at a predetermined time and location to determine the winning bidder.
Registration
On auction day, registration usually begins 60 minutes before the scheduled auction time. In order to bid at the auction, you must have a bidder number. You register for a bidder number by 1) Completing a registration form. 2) Obtaining a bidders information packet containing all pertinent property/auction information. 3) Sign a "Terms of Sale" agreement. And 4) Present the cashier a certified check or money order made payable to yourself in the amount previously advertised. This will be applied to the down payment should you be the high bidder. In the event you are the high bidder, you will be required to put up additional funds to equal the required down payment (usually 8% to 10% of the final price) and these additional funds can be in the form of a good check.Before the Bidding Begins
The auction begins promptly at the appointed time with opening remarks summarizing, for the record, the terms of the sale, the methods of bidding and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the auctioneer answering any final questions. Then the bidding is ready to begin!The Auction Team
Assisting the auctioneer will be the auction assistants. They will make sure anyone trying to bid is recognized and that all bids are recorded with the auctioneer. The assistants may also assist with questions during the auction, including asking the auctioneer to pause if necessary. It is a myth that bids can be made accidentally by scratching one's nose and the like. If you did not intend to bid, simply inform one of the auction assistants or the auctioneer and the mistake will be corrected. Any tie bids or other issues regarding who has the high bid are always resolved by the auctioneer, who has complete and final authority."SOLD"
From the first bid, things move quickly, with bidders offering their bids up to the price they are willing to pay for the property. The auctioneer can and will say "sold" or "high bidder" as soon as he or she determines that the final bid has been made. It is not necessary or customary, for the auctioneer to slowly announce, "Going once, gone twice, etc." The auctioneer simply decides the bidding has stopped and announces, "Sold". If the auction is for a single property, this concludes the auction and the purchaser simply executes the contract of sale and makes the required down payment.Buyers Choice
If there is more than one property or parcel being offered, the "buyer's choice" method is often used. In a "buyer's choice" sale, items will be numbered or lettered for identification purposes. The number or letter will not relate in any way to when the property will be sold. Instead, each time the auctioneer says "sold" the person with the high bid will choose which parcel(s) or property(s) they want to purchase by announcing the number(s) of letter(s) describing that property(s) or parcel(s). The high bidder can take as many parcels or properties as they want from those that remain unsold, and in any order or combination. His or her high bid is simply multiplied by the number of properties or parcels they have chosen at that time. Once chosen by a high bidder, and unless otherwise announced, that property is "sold" and no longer available. It is therefore very important that bidders realize if they do not have the high bid, the property or properties they want could be chosen (sold) by the high bidder and will no longer be available. Sometimes, the high bidder will choose many properties at once, and in some sales, choose every property available, thereby bringing the auction to a close. "Buyer's choice" allows buyers, not the auction company or seller, to determine how, when and at what price they will purchase property.Contract of Sale
The successful high bidders (Buyers) at every auction are bound by the written terms and conditions as publicized for each sale. This includes the Contract of Sale, which is executed immediately after the bidding. The sample Contract of Sale provided is amended as necessary for each particular auction. It is available at the Open Houses or Inspection Periods, by mail or fax, and of course on-site the day of the auction. The act of bidding at the sale by anyone will be deemed a representation and warranty to the Seller and Midwest Properties Auctioneers (MPA) that he/she has read the Terms of Sale and Contract of Sale in their entirety, together with any amendements and/or attachments, prior to bidding. Attachments to the Contract of Sale may include a Seller's Disclosure Form prepared by a third party closing or title firm. If a potential bidder has not read and agreed to be bound by all of these documents prior to the auction, he/she should not bid. All offers are subject to Seller approval unless otherwise disclosed on the date of the auction.Inspections
The real estate to be auctioned will be available for inspection at certain advertised dates prior to the auction, as well as by appointment when necessary. Registration is required at all such inspections and again at the auction in order to receive a bidders number. All real estate is sold "AS IS", "WHERE IS" (contracts are not contingent on any buyer or lender inspections) so Buyers should make any desired inspections during these viewing hours. All properties are made available solely at prospective buyers own risk and expense, including without limitation all dangers inherent, known, or unknown; and Sellers and MPA expressly disclaim any "invitee" relationship which could be construed and therefore any liability incurred by any person inspecting, viewing, or attending the sale of any property.Title
A title insurance commitment for each property is prepared and available prior to closing. The Seller warrants insurable title per the terms of the Contract of Sale, and will evidence same by obtaining the title insurance commitment from a third party title/closing firm identified in the Contract of Sale as amended. The third party title examiner issues the title policy, and Buyer is welcome to retain their own counsel to review title and/or policies. Prior to bidding, potential buyers should review and understand the restrictions and obligations placed on the Property, whether disclosed in the title commitment, Contract of Sale, or otherwise of record in city/county records or announced. Such restrictions may be found at the county courthouse where the property is located, the county and city planning and zoning commissions or departments, and by consulting with an attorney. At closing, the Buyer shall be given insurable title as the property is transferred by a deed prepared by Seller, clear of liens or encumbrances (taxes, transfer fees, etc. will be prorated between the Buyer/Seller).Closing Costs
The seller pays for title commitment curing any title defects (as determined by the third party title examiner); revenue stamps or other taxes customarily due from Seller upon filing of a deed; and ½ of the closing fee. The Buyer pays the third party title examination fee; the title search fee; the title insurance premium (based on sales price) and ½ the closing fee. Current year's real estate taxes are usually pro-rated through day of closing. Midwest Properties Auctioneers charges a "buyers premium" which is a percentage of the winning bid and is added on to determine the final contract price. This percentage varies from 6% to 10% depending on the property and is announced prior to auction. (Example - If the winning bid is $1,000,000.00 and the buyers premium is 10%, then the final contract price will be $1,100,000.00.) In addition, the Buyer may have additional closing costs related to any loan secured by the Buyer; any special inspections ordered by the Buyer prior to auction; and any survey, plat or other fee announced for the sale. Potential Buyers and Sellers should consult his/her lender and/or the closing company for a more detailed estimate of closing costs.Closing Date
The Buyer will be required to close (pay the balance of the purchase price plus closing costs) within 30 days from the date of the auction. Sellers will usually offer a Buyer reasonable extensions if more time is needed, but this decision is solely that of the Seller and will include a per diem charge for each day that the Buyer is late. By bidding, each potential Buyer is representing and warranting to the Seller and MPA, their agents, employees, and officers, that the Buyer is accepting the Property in its current condition, including fixtures, equipment and appliances, if any; is accepting the title per the title insurance commitment and is prepared to close with cash immediately.Down Payment
The Buyer is required to make a deposit at the auction for at least 8% to 10% of the final sales price. A minimum advertised amount by cashiers check or money order will be needed to give to the cashier on auction day in order to receive a bidders number. The successful high bidder will then present the difference between the amount given to the cashier and the amount equal to 8% to 10% of the final sales price by good check. Please call our office at 330.225.2822 or check the specific property information page on this website to confirm the amount needed to bid and the required down payment for the particular property you are interested. The down payment is non-refundable. If for any reason Seller does not perform per the terms of the Contract, the sole remedy shall be the return of Buyer's down payment.Financing
If a potential Buyer plans on using financing to close, then they should take all steps necessary to secure financing prior to bidding, since auctions are never contingent on financing.Disclaimer
Information as might otherwise be provided is from sources deemed reliable, but no warranty or representation is made as to its accuracy. Midwest Properties Auctioneers expressly disclaims any liability for errors, omissions or changes regarding any information provided. Potential purchasers are strongly urged to rely solely upon their own inspections and opinions in preparing to purchase any property and are expressly advised not to rely on any representation made by the agents. Properties may be added or deleted at the discretion of Midwest Properties Auctioneers and Sold with reserve unless otherwise indicated.Equal Opportunity
Midwest Properties Auctioneers staff espouse a firm commitment to providing professional services to any person, regardless of race, color, religion, sex, handicap, familial status, or national origin. Our firm shall not be a party to any plan or agreement to discriminate against a person or persons on the basis of these or any similar prejudices.
