"HOW TO BID?" For Online Auctions, click on the "Bid" button located next to the item or lot that you are interested in bidding on. Enter the amount of your bid in the space provided and click "Submit". Your bid is now recorded and posted in the "Bids" Section. For live, on-site auctions, simply raise your bid card high enough for the auctioneer to see it. Typically, the amount the auctioneer is calling for is the price he as asking you to pay.
"ABSENTEE BID" A procedure which allows a customer to participate in the bidding process without being physically present. It is usually handled under an established set of guidelines by the auctioneer or his representative.
"ABSOLUTE AUCTION" An auction without reserve. See Auction Without Reserve.
"ACCOUNTING OF SALE" A report issued to the seller by the auctioneer detailing the financial aspects of the auction.
"ALL SALES FINAL" means just that. No refunds are given for any reason. The auctioneer will not resale or re-auction any item that you decide you don’t want after buying it.
"AS IS" means that you are purchasing all merchandise as it is. If it is scratched, broken, incomplete, or won’t work, that’s the way you buy it. It is up to the buyers to rely on their own inspection of merchandise. If you need help, or are unsure what to do, then Call Us!  915-778-4800 or 806-763-3010.
"AUCTION WITHOUT RESERVE" An auction in which property put up for sale is sold to the highest bidder; where no minimum price will limit the bid; where the seller may not withdraw the property from the auction after the first bid has been received; and where the seller may not nullify the sale by bidding himself or through an agent.
"AUCTION SUBJECT TO CONFIRMATION OR RESERVE" An auction where the seller has a minimum acceptable bid for which (s)he will sell the property. The minimum price may or may not nullify the sale by bidding himself or through an agent. "Auction Without Reserve" is equivalent to the term "Absolute Auction".
"AUCTIONEER" A person whom the seller engages (or "Consigns") to direct, conduct or be responsible for a sale by auction.
"BALLROOM AUCTION" An auction of one or more properties conducted in a meeting room facility, hotel convention facility or other indoor location. At this type of auction it is assumed that the bidders have inspected the property and are usually shown pictures and other descriptions of each property as it is offered for sale. The ballroom auction format allows for progressive auctioneers to utilize Internet bidding.

"BID" An offer of a price.
"BID ASSISTANTS" are auction staff members who can relay your bid to the auctioneer. If you cannot get the auctioneer’s attention, get a bid assistant to bid for you.
"BIDDER’S CHOICE" when there are several identical or similar properties or items, the bidder bids the price (s)he is willing to pay for one. With bidder’s choice, the bidder can take as many of the the identical or similar lots as (s)he wants by multiplying the bid price by the number of items. (For example, there are 10 identical lots, the bidder bids $5,000.00 for 1 lot, and takes 6 lots for a total of $30,000.00. The remaining 4 lots are offered until all are sold.)
"BIDDER’S INFORMATION PACKAGE" A package of documents provided by the auction company that contains information for the bidder such as a contract, survey, and disclosure statements.
"BUYER’S PREMIUM" An amount of money, usually based on a percentage of the successful bid, charged to the successful bidder and either added to the successful bid to determine the final selling price or paid separately by the successful bidder in addition to the successful bid.
"CARAVAN AUCTION"  A series of on site auctions advertised through a common promotional campaign that is located very close together. The bidders and auctioneer will actually travel from location-to-location and call each auction while all of the participants are at each property.

"CLIENT" The part for whom the auctioneer sells property; it is often synonymous with "seller".
"COMPLETION OF SALE" A sale by auction is complete when the auctioneer so announces by fall of the hammer or in some other customary manner.
"CUSTOMER" A part who attends the auction for the purpose of buying the property offered for sale.
"EXCLUSIVE RIGHT TO SALE" An auction agreement between the owner of a property and the auctioneer giving the auctioneer the exclusive right to sell the property and receive the agreed upon commission when the property is sold, regardless of who is responsible for producing the buyer.
"MINIMUM BID" The lowest acceptable price at which the seller agrees to complete the sale.
"MULTI-PARCEL or MULTI-PAR AUCTION"  A Multi-Par auction is where bidders may bid on a single property sold either as an entire parcel or in multiple parcels. A good example is when a tract of land such as a farm or timberland that would traditionally be sold to a large company due to the size and price but would make excellent home sites, ranches or other uses in smaller parcels. The property would be parceled or grouped prior to being offered for sale and advertised as such. The property is then simultaneously offered as whole and partial parcels to bidders. If a 1,000 acre parcel was divided into 50 lots of 20 acres each and offered for sale to individuals, the bidders on the smaller parcels are exercising a form of group buying power in that for every $1,000.00 bid increment, it will create a $50,000.00 bid increment for the parties bidding on the entire parcel. The Multi-Par auction is based upon deriving the maximum price for the seller, no matter which group of bidders wins.

"MULTI-PROPERTY AUCTION" A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers. A Multi-Property auction may use any of the types of auctions described here. This type of auction offers both buyers and sellers many advantages, the seller a shared advertising and promotional campaign, the buyers a wider variety of property at a single sale.

"MULTI-SELLER AUCTION" Properties owned by many sellers, offered through a common promotional campaign are auctioned in a single event. A Multi-Seller auction may use any of the types of auctions described here. This type of auction offers both buyers and sellers many advantages, the seller a shared advertising and promotional campaign, the buyers a wider variety of property at a single sale.

"PAYMENT" The auction company will accept various types of payment. Cash, checks with bank letters of credit, or certified funds may be required. All merchandise must be paid for in full each day. Walter Parker Auctioneer, Inc.  can REFUSE ANY CHECKS without proper identification or bank letters guaranteeing the check.
"RELATED PARTY" Any member of an auctioneer’s immediate family, the auctioneer’s firm or any member of thereof or any entity in which the auctioneer or one of the above owns a controlling interest.
"TERMS & CONDITIONS" These are the governing rules for a specific auction. Each auction’s terms and conditions may vary and the bidder must understand them before participating in an auction.

Selling Real Estate at Auction

Why would I sell Real Estate at auction instead of pricing it?

Auctions are fast, efficient and produce fair market value. When a property is "priced" it is either under priced or overpriced. Either way, you lose. If the price is too low it sells quickly, but equity is lost. The first bargain hunter that comes along steals it, perhaps making the profit that should have been yours. If the price is too high the property does not sell. It then has to be advertised again at a lower price or negotiated through negative haggling with one person at a time. Unneeded real estate is expensive to hold (taxes, maintenance, insurance, etc.) The auction creates a sense of urgency. All serious people are brought together to compete, driving the price upward. You are assured of fair market value. The auction method of marketing is the only method where you may receive more money for your property then you would have asked.

What types of properties sell at auction?

All types. Walter Parker Auctioneer, Inc.  has sold vacant land, building lots, single family homes, multi-family homes, commercial buildings, condos, townhouses, subdivisions, and industrial buildings.

What is considered when deciding if my property is a good auction candidate?

Walter Parker Auctioneer, Inc.  reviews your motivation and the marketability of the property. In short, a motivated seller in a positive financial position to sell in today's market is a good candidate. If, on the other hand, you owe more on a property then it is worth, the auction method is not for you.

Can I auction a property that has a mortgage, taxes or liens owed?

Yes, most Sellers have a mortgage and or other liens on their property. However, the total owed should be substantially less then the anticipated sale price. You have until the "Closing" to pay off any outstanding debt and provide "insurable title" to the successful bidder.


What do you mean by "insurable title"?

If a Texas or New Mexico (depending on location of property) State title insurance company will insure the property at closing, you have completed your obligation to the buyer. All Walter Parker Auctioneer, Inc.  property auction offerings are sold with good, insurable titles and no liens, judgments, mortgages, or back taxes. If the title cannot be cleared, the down payment is refunded to the Buyer.


Is there a way that I can determine if my property would be a good auction candidate?

Yes, Walter Parker Auctioneer, Inc.  offers a free "Property Evaluation Form" that you can fill out to determine if your property fits the profile of a good property to auction.


Are there different kinds of real estate auctions?

Yes, auctions can be "Absolute", "Subject to Confirmation", with "Reserve", with a "Stated Minimum".


What does "Absolute Auction" mean?

A property that is sold at "Absolute Auction" means that it is selling to the highest registered bidder regardless of price. There is no minimum and the seller cannot reject the highest bid attained at the auction.


What does "Subject to Confirmation" mean?

It means that the property is being offered to the highest bidder subject to the seller accepting or rejecting the bid. Most Walter Parker Auctioneer, Inc.  property auctions are offered subject to seller confirmation.


What is a "Reserve Auction"?

It is similar to the "subject to confirmation auction" except that there is an undisclosed reserve dollar amount set by the Seller. The property cannot be sold unless the bidding meets or exceeds the reserve.  In the case of bankruptcy and certain court ordered auctions, many properties are sold subject to a reserve price or final ratification by the Court before the sale can be completed.

What is a "Stated Minimum" bid auction?

An auction where the Seller announces the "reserve" or "minimum bid" and generally will sell the property "absolute" at or above the stated minimum. Example: "This property shall sell at absolute auction at or above a minimum of $41,237". If any one bids the stated amount or more the property will sell.


I have not seen a real estate auction before. Can I come to an auction just to watch?

Absolutely, we encourage anyone to attend and watch the bidding. You will be entertained and amazed at the process. Best of all, it's free.


So how does Walter Parker Auctioneer, Inc.  get compensated for services?

The Buyer pays our commission in the form of a Buyers Premium. You do not pay a commission. However, you are responsible for the actual marketing expense. Walter Parker Auctioneer, Inc.  will provide you with a budget and timetable for the sale of your property at auction.


What is a Buyers Premium?

A Buyers Premium is that portion of the commission paid by the buyer. The Buyers Premium is added to the bid to become part of the total sale price. Walter Parker Auctioneer, Inc.  charges a 10% Buyer Premium.


What is the timetable for a real estate auction?

Typically 30 days. Walter Parker Auctioneer, Inc.  would recommend 30 days from the time your property is listed until the auction date. The 30 days enables adequate time for brochure distribution, 3 1/2 weeks of advertising, signage and Preview time. Some special properties require more time and we have conducted auctions in shorter timeframes.


What type of marketing campaign is implemented on my property?

Walter Parker Auctioneer, Inc.  conducts an extensive advertising and promotional campaign for your property. The plan includes advertising, news stories, signage, website, emails, faxes and illustrated brochures, plus exposure on Ebay and other major auction sites when warranted. The timely ads and brochure mailings create a sense of urgency. Walter Parker Auctioneer, Inc.  maintains a professional Website that features the latest in Live Webcast Technology, allowing buyers to bid from anywhere in the world. Buyers are encouraged to view your property and prepare themselves to compete on auction day. Brochures and email flyers are mailed to adjacent property owners, several hundred neighbors, our database of proven buyers and real estate agents. Real estate agents are encouraged to bring their buyers and share in the commission. Anyone requesting the brochure from print ads also receives it. National, regional and local ads are run for 2-3 ½ weeks prior to the auction.


Where is the actual real estate auction held?

It depends on the location and type of property. We conduct "on-site" Estate auctions at the property being sold. Government Surplus Auctions are held at town or city facilities.  On-site auctions can be held inside a building or under one of our tents. When we sell from a Ballroom Facility, or hold Surplus or Real Estate Auctions, we do a digitized presentation on our PowerPoint projector system.


How do I know that the potential buyers are qualified to buy my property?

Walter Parker Auctioneer, Inc.  has a proven system to get potential bidders on a level playing field prior to bidding. All bidders must register prior to bidding. At registration they must provide some form of positive ID, such as a drivers license, sign the Terms & Conditions agreeing to the rules of the auction, and submit their bank check, guaranteed funds or cash for their initial down payment. Furthermore, if they are successful they will sign the Bid Acknowledgment form, the no contingency Purchase & Sale Agreement and provide a 2nd down payment of the 10% Buyer Premium. They agree to close within 30-60 Days; time is of the essence. If they fail to comply they have agreed in advance to forfeit their down payments, be responsible for remarketing costs and any legal fees involved. The auction sale is a solid sale. The buyers close.


Is there an agreement to sign if I decide to sell my property at auction?

Yes, Walter Parker Auctioneer, Inc.  will furnish you with a copy of our standard Real Estate Listing Agreement upon request.

What paperwork do I need to provide Walter Parker Auctioneer, Inc.  if I list my property?

Walter Parker Auctioneer, Inc.  would like to have a copy of any and all documents pertaining to your property that you can provide, such as a copy of the deed, survey, tax ID number, tax bill, etc. We also have a Property Fact Sheet that we would like you fill out for our use in describing the property in the brochures and ads.


Is there an opportunity for potential bidders to view my property prior to the auction?

Absolutely. In addition to the website, ads and direct mail brochure we also offer free Preview by appointment. The Preview is an opportunity for buyers to examine closely individual properties prior to the actual auction. It is strongly recommended that all buyers preview properties prior to bidding. Walter Parker Auctioneer, Inc.  encourages buyers to bring their contractor, home inspector or buyers' broker with them for inspections.


What can I expect on auction day?

Walter Parker Auctioneer, Inc.  will have a professional team of auctioneers and bid assistants plus all equipment necessary to conduct the registration process and the auction. A presentation will be done on each property prior to soliciting bids. Once bids are accepted the auction team will work with the buyers to obtain the highest possible price. Contracts are signed, down payments are placed in escrow and we are on the way to closing.


What is a "bid assistant"?

A staff member, usually one of the auctioneers not currently selling, that is watching the crowd for bids. Sometimes called "bid spotters" or "ringmen", they are extensions of the auctioneer. Often it is difficult for the auctioneer to see all the bids coming from a large crowd in a big room. The bid assistant listens to the "chant" of the auctioneer and scans the room for the current bid. If a bid assistant yells out "yup" the auctioneer knows that he has the current bid being asked for and will proceed to ask for the next bid.


What is an auctioneer's "chant"?

The auctioneer's chant is the rhythmic talk that orchestrates the sale of each property. Dissected, the chant is comprised of numbers and filler words. To start the chant the auctioneer describes the property up for bid and suggests and opening bid. Once he has an opening bid he will repeat what he has and ask for a higher bid. Example: I have fifty-thousand dollars who will bid $60,000? I have $60,000 now $70,000 - do I hear $70,000? - Sold $60,000 to buyer #...


Where does the bidding start?

Anywhere the auction audience wants to start it. An auctioneer might ask for $100,000. to start. If no bid he will drop the asking increment until someone starts. The property might start at $25,000 and soar to $400,000 or end at $50,000 based on market value.


Will the auctioneer say "Going once, twice, ...?

Professional auctioneers and bid assistants will be working closely with the bidders during the bidding process. Interested bidders are encouraged to bid early in the process and bid confidently until they are the high bidder or have reached their limit. When the active bidders are done bidding the auctioneer says "sold!" and moves on to the next property. You must pay attention! Note: the average time to auction a piece of property is 6 minutes.


What is a Bid Acknowledgment Form?

The successful bidder is required to sign one of Walter Parker Auctioneer, Inc.'s Bid Acknowledgment Forms at the conclusion of the bidding. The form has the description of the property that he bid on, the bid, the Buyer Premium, the total with Buyer Premium and his bid number. This form verifies that the bidder agrees that he is the high bidder.


When and where does the Closing take place?

Walter Parker Auctioneer, Inc.  recommends 60 Days for closing. However, some Sellers opt for 30 or 45-day closings for their auctions. The closing is usually at the Seller's attorney's office or at the office of the lending institution.


Is the Closing different then any other real estate Closing?

No, the closing is the same. The main difference between private treaty selling and the auction method is how the price is arrived at. Once the auction is over your attorney and the attorney for the Buyer get together and arrange for the closing in the customary manner.


What happens if the high bidder fails to close?

Walter Parker Auctioneer, Inc.  immediately notifies the backup bidder in order to secure a new Purchase & Sale Agreement. If not, the property is made available to other registered bidders and the open market.


What is market value?

Fair market value is the price for which a property will sell on the open market between a willing buyer and a willing seller neither being under compulsion to buy or sell as of a specific date. Generally, it is the price that a property will fetch at a well-advertised auction. Factors that come into consideration are location, age, condition, quality, size and desirability. Auctions are the last niche of the free enterprise system where the laws of supply and demand prevail.


What is "high bidder's choice" and when is it used in a real estate auction?

Properties that are similar (such as residential lots) may be sold using the high bidder's choice method. The high bidder may select from all of the lots in the group, and choose more than one. Of course, if the bidder chooses three lots the bid is multiplied by three. In order to have the opportunity to choose a lot, the bidder must compete and become the winner.


What does 'by the acre" mean?

Land parcels are often offered "by the acre". The winning bid price is multiplied by the number of acres to arrive at the price. Example: 150 acres at $500. per acre = $75,000


Will I be reminded of the auction date for my property?

Walter Parker Auctioneer, Inc.  will notify you with an advanced brochure mailing reminding you of the date of your auction. In addition, we will mail to anyone else that you would like us to notify about the auction. Perhaps relatives want to know when the auction is, or there was someone that made an offer on your property prior to the auction. We will do these additional mailings at no charge.

Buying Real Estate at Auction

I have never attended a real estate auction before what should I do?

If you are interested in buying at any Walter Parker Auctioneer, Inc.  real estate auctions you should read all the answers to these FAQ. You should subscribe to our email list to get listing of upcoming real estate auctions (Home Page). Obtain a listing all properties in the real estate auction. Call your lender and pre-qualify. Preview all properties of interest. Check out the values in the neighborhood and set a range of value or limit for your bidding. Be prepared to bid to your limit. Review the Terms & Conditions of the auction you are interested in. Do your due diligence on the property. Arrive early at the auction site to register to bid and get to know the auction staff. Ask questions about properties of interest prior to bidding. Determine what the property is worth to you and then bid confidently to obtain it. Get comfortable and relaxed. Listen closely to the auctioneer. Don't be bashful or you might miss a great buying opportunity. Once you are successful, sign documents and your on your way to closing.

What do you mean by "due diligence"?

Walter Parker Auctioneer, Inc.  will provide you with the information that is available from the seller on each property. However it is your responsibility to satisfy yourself that all information is accurate and to your satisfaction. You might want to check with the local municipality to verify taxes, zoning and get a copy of the deed or tax map. You might want to walk the property to inspect the "lay of the land". You might want to have professional inspections done of the improvements. Typically, you are buying the property as, is without contingencies. The Seller will provide insurable title free of adverse liens by closing. Therefore, you should do your homework prior to bidding.

What do you mean by "insurable title"?

If a Texas or New Mexico (depending on location of property) State title insurance company will insure the property at closing, the Seller has completed their obligation to you. All Walter Parker Auctioneer, Inc.  property auction offerings are sold with good, insurable titles and no liens, judgments, mortgages, or back taxes. If the title cannot be cleared, your down payment is refunded.

What are Previews?

Previews are exhibitions of property to be auctioned, offered free to the public by appointment. The Preview is an opportunity for buyers to examine closely individual properties prior to the actual auction. It is strongly recommended that all buyers preview properties prior to bidding. Walter Parker Auctioneer, Inc.  encourages you to bring your contractor, home inspector or buyers' broker with you for inspections.

Why and What do I need to do to Register?

Registration is a process of identifying yourself in our system as a potential buyer. If you want to participate in one of our auctions you will need to provide some form of positive ID such as a drivers license. You will need to sign the standard Terms & Conditions for the auction and provide the stated down payment amount for the property of interest in guaranteed funds. You will receive a bid card with a number, which is used to identify yourself as the successful bidder. You will also be provided a Bid Packet with copies of the Terms & Conditions, Bid Acknowledgment Form, Purchase & Sale Agreement, Texas or New Mexico (depending on location of property) Agency Disclosure Form and information on the property that you are interested in. Once you have registered you are in our database and eligible to bid.

Do I have to attend an auction to bid on a property?

No, there are two ways that you can participate. You could send someone to the auction to bid on your behalf that you have granted limited Power of Attorney to (consult attorney). Further, you may bid by utilizing an Absentee Bid Form. This form must be filled out with your personal information for proper registration. Absentee bids must be accompanied by the proper down payment for the property of interest along with signed Terms & Conditions, a signed Purchase & Sale Agreement complete with the total bid offer.

Do you start the bidding with my Absentee Bid?

Yes, the total absentee bid on real estate, according to NY State law, must be submitted in its entirety. In other words, if your absentee bid were $100,000, your bid would be submitted as $100,000.

Can I make an offer prior to the auction?

Absolutely. We will submit the written offer on the Purchase & Sale Agreement to the Seller for acceptance. Of course the Terms and Conditions of the auction will be adhered to. We recommend that you make your best offer at this time.

How do I bid in the "live auction"?

Simple, just signal the Auctioneer or one of the "bid assistants" to start or participate in the bidding. It is best to use your bid card to get attention. After the auctioneer/bid assistant has acknowledged your bid they will be watching for subsequent bids. If you are the successful bidder, hold up your bid card so that they can record your bid number on the Bid Acknowledgment Form. If the bidding exceeds your limit, simply nod your head

What happens if the high bidder fails to close?

We have over a 99% closing success rate. In the event a high bidder forfeits the bid, Walter Parker Auctioneer, Inc.  immediately notifies the backup bidder in order to secure a new Purchase & Sale Agreement. If not, the property is made available to other registered bidders and the open market.

Is it possible to get a bargain at auction?

Absolutely. However, keep in mind a "bargain" is like "beauty" it is in the mind of the beholder. One person might say "That guy is nuts to pay $800,000 for that big chunk of ground," while the buyer is thinking "I just got a bargain at $800,000, I'm going to subdivide and develop for a nice profit". You can get great value buying at just one bid over the next interested party. But, don't be fooled by those late night television shows that promise that you can make a million dollars buying property dirt-cheap. It might be possible to buy a skyscraper for $1., but you have to have it torn down and removed by the end of the week!

Are there different kinds of real estate auctions?

Yes, auctions can be "Absolute", "Subject to Confirmation", with "Reserve", with a "Stated Minimum".

What is a "Stated Minimum" bid auction?

An auction where the Seller announces the "reserve" or "minimum bid" and generally will sell the property "absolute" at or above the stated minimum. Example: "This property shall sell at absolute auction at or above a minimum of $41,237. If any one bids the stated amount or more the property will sell.

If a seller has a reserve, why don't they tell us the reserve, instead of wasting our time?

Walter Parker Auctioneer, Inc.  is only interested in representing "motivated sellers". It is not a waste of time to go to "subject to confirmation" or 'reserve" auctions. Motivated Sellers usually set their reserve based on their belief of the true market value. However, by not printing a stated minimum, they have the flexibility to lower their reserve and accept true market value on the day of auction. Example: A Seller sets a reserve of $100,000 on his home because his neighbor's sold for $110,000. On the day of the auction he witnesses 25 registered bidders compete to drive the bidding to $96,600. No one is willing to pay $96,700. The Seller has purchased another home and does not need this one he is auctioning. Today is the day and he opts to accept $96,600. What would have happened had he printed "Minimum bid $100,000"? No one would have come to the auction, and he would not have had the opportunity to review the top offers. Perhaps his neighbors house was larger, had more features, etc.

Can I sell my real estate at auction?

Yes, we would be pleased to consult with you about the sale of your property. Please contact us if we can be of service at 915-778-4800 or 806-763-3010.