Can I inspect the property before bidding?
Yes, we generally recommend conducting an inspection before placing a bid. However, this is subject to the seller's preference, as some may choose not to allow showings or inspections before the auction concludes.
Can I cancel my bid after it's been placed?
No, all bids are final. If the winning bidder fails to close by the "Must Close By" date specified in the listing, the buyer will be in default and will forfeit their deposit.
How can I deposit funds?
Navigate to your Federa Account, select "Payments & Payouts" and then click on "Transfer In". The deposit can only be made by the buyer not the buyer's agent.
What payment methods are accepted for the deposit?
We accept credit, debit and ACH.
If I'm financing and the lender's appraisal comes in lower than my bid, what happens?
Auction listings are sold as-is with no contingencies. We encourage all bidders to keep this in mind before submitting a bid, because once they submit a bid they cannot cancel.
Who selects the title company?
The title company is selected by Federa.
How can we see how many bidders there are?
You can view the Auction in real time via our
Auctions page. Or in your Federa Account, go to the "Auctions" page.
Is there a reserve?
- If the auction has no reserve, it's indicated on the website.
- When there is a reserve, it isn't displayed on our site.
Do the auction listings have a lien?
No, our auction listings are clear of any liens. This applies to titles, including those with a Quit Claim Deed.
What does "Sold-As Is" mean?
The term "sold as-is" in real estate indicates that the property is being sold in its current condition, and the seller will not make any repairs or improvements before the sale closes. Buyers purchasing an as-is property agree to accept it with all existing issues, both apparent and hidden. This means the buyer assumes all risks of any problems or defects that may exist or arise in the future.
Will the auction listing be delivered vacant?
All auction listings are sold as-is and are presumed to be occupied, with the buyer assuming all responsibilities, unless explicitly stated as vacant in the listing.
Why does a seller list as an Auction?
Sellers opt for auctions to ensure transparency, benefit from a short sale process, and foster a competitive environment. Additionally, buyers are more committed, as they must provide a non-refundable deposit if they win the auction.
Who is responsible for the closing costs?
The standard closing costs are split 50/50 between the buyer and seller.
Will the $5000 deposit count as a credit to the buyer if they win the auction?
Yes. The $5k deposit is applied as a deposit on the property. Federa charges a $5,000 service fee from the seller. This fee is first credited to the seller from the winning bidder's non-refundable deposit and then debited as the Auction Service Fee.
Do I submit the bid or does my buyer submit it?
The buyer would need to place the bid.
How can I, as an agent or broker, ensure that I receive compensation for an auction my clients are bidding on?
To ensure you receive your due compensation for your client's winning bid, follow these steps:
In the main menu click "New Transaction" > "Buying" > Select the listing state > "Searching" > Enter Transaction Nickname and continue
In the 'People' section, edit your role and add your client. They will be sent an email invitation to join Federa. Ensure they sign up using the same email address you've entered in the transaction details. Your client can then proceed with the steps outlined at the beginning of this article to participate in the auction.