How to Place a Bid on a Federa Auction Listing
Overview
Federa Auctions provide a unique marketplace for sellers and buyers to interact and negotiate in a transparent and efficient manner.
Important Information to Note
- Auction Type: All auctions are 'As-Is' with no contingencies.
- Bid Registration: Ensure you're registered on Federa before placing a bid. This is a one-time process for prospective bidders.
- Bid Verification: To verify your bid, a $5,000 deposit is required. This deposit is returned if you are outbid during the auction.
- Due Diligence: We strongly advise all bidders to carefully review the listing details. This will provide you with a comprehensive understanding of the property as well as valuable insights from the Federa community.
- Reserve Met: If the reserve price is met or if there is no reserve, a confirmation email is sent to the winning bidder with the next steps to finalize the transaction. It's important to note that Federa is not involved in the closing process.
- Reserve Not Met: If the reserve isn't met, it indicates that the minimum price set by the seller wasn't reached, and they aren't obligated to sell. The highest bidder can get their deposit refunded and have the opportunity to submit a standard offer through Federa. How to Make an Offer on Federa
- Federa Auction Service Fee: A $5,000 service fee is charged by Federa from the seller for successful auctions. This fee is initially credited to the seller from the winning bidder's non-refundable deposit and then debited as the Auction Service Fee.
- Financing: Financing details are not required for offers made through auctions. The buyer must close by the mutually agreed 'Close by Date'.
- Community Interaction: Each auction has a comment thread where sellers and the Federa community can discuss the property
- Sniping Protection: We extend the auction clock by two minutes each time a bid is placed. This ensures fair competition and allows all participants to place their maximum bids.
- Bid Increments: Each bid must be $1,000 more than the current bid.
- Notifications: Participants in the auction are kept informed of the status, including outbidding, through email, SMS, and in-app push notifications provided by Federa.
Step by Step Guide For Bidders
Sign Up or Sign In to Federa
Sign Up or Sign In. If you have an account, proceed with signing in. If you're new to Federa, Sign Up.
Verifying a Bid
Before placing a bid, you need to verify it. Each bid is verified through a $5,000 deposit. This deposit is refunded if the bidder is outbid.
- Once logged in, go to the main menu.
- Select "Account" > Click "Payments & Payouts"
- Click "Transfer In"
- Next, you'll be directed to a page where you can add funds to your account.
- Once you add funds, you can start bidding by going to the Auctions page. You will also receive a receipt via email.
Navigate to Auctions
- Select the "Auctions" page in the main menu.
- Select the property you're interested in bidding.
Placing a Bid
- Enter your desired offer amount in the "Offer" field.
- Click on "Submit Offer"
- If you get outbid, you can submit another bid using the same steps.
Buyer Related FAQs
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.
Buyer's Agent Related FAQs
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.
If your client wins, the auction links to this transaction, ensuring your recognition and compensation. Please set up the transaction before the auction ends and include both you and your client.
Download the Federa Home App
For a better auction experience download the Federa Home app. Submit bids, monitor auctions, and get real-time notifications for new Auction Listings and new bid alerts.
We believe in transparency and aim to provide the best possible experience to our users. If you have any further questions, please don’t hesitate to contact our support team at support@federa.com or submitting a ticket here.
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