Federa Auctions: A Comprehensive Guide for Bidders

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

  1. Auction Type: All auctions are 'As-Is' and non-contingent.
  2. Bid Registration: Ensure you're registered on Federa before placing a bid. This is a one-time process for prospective bidders.
  3. Bid Verification: To verify your bid, a $5,000 deposit is required. This deposit is returned if you are outbid during the auction.
  4. 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.
  5. Reserve Met: If the reserve price is met or if there is no reserve, we provide the seller and the winning bidder with each other's contact information to finalize the transaction.
  6. Reserve Not Met: If the reserve is not met, bidders can submit a standard offer through Federa. How to Make an Offer on Federa
  7. 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.
  8. Financing: Financing details are not required for offers made through auctions. The buyer must close by the mutually agreed 'Close by Date'.
  9. 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.

Step by Step Guide For Bidders

Sign Up or Sign In to Federa

Click here to either Sign In or Sign Up. If you already have an account, proceed with signing in. If you're new to Federa, select "Sign Up" and simply follow the instructions to establish a new account.

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. 
  1. Once logged in, go to the main menu.
  2. Select "Account" > Click "Payments & Payouts" 

  1. Click "Transfer Funds"

  1. Select "In" and click "Continue"

  1. Next, you'll be directed to a page where you can add funds to your account, enabling you to begin bidding. 
  2. Once you add funds, you will receive a receipt via email. 
  1. Select the "Auctions" page in the main menu.
  2. Select the property you're interested in bidding.

Placing a Bid

  1. Enter your desired offer amount in the "Offer" field.
  2. Click on "Submit Offer"
  3. 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 actively encourage inspections prior to placing a bid.

Can I cancel my bid after it's been placed?

No. Once a bid is placed, it cannot be cancelled.

How can I deposit funds?

Navigate to your Federa Account, select "Payments" and then click on "Transfer". 

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 buyer is responsible for selecting the title company and should disclose this information after the auction concludes. 

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?

  1. If the auction has no reserve, it's indicated on the website.
  2. When there is a reserve, it isn't displayed on our site.

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.

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:
  1. Click here to either Sign In or Sign Up. 
  2. Click "New Transaction" > select "Buying" > Select "Still Searching"
  3. In the Add People section, add both yourself and your client to the transaction.
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. 

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.