Selling at auction or selling to us.
An auction sells the property to the highest bidder under the auction company's terms. Terms differ a lot between auction companies, so the table says what to ask.
Side by side
| Topic | Sell to Star Thing LLC | Sell at auction |
|---|---|---|
| Commission | None. If we assign, our fee comes from the price difference | Fees vary; ask in writing |
| Closing costs | We pay all of them | Set by the auction terms |
| Repairs | None, as-is. We may ask a lower price if the inspection finds surprises | Depends on the auction terms |
| Buyer's loan | No financing condition | Depends on the auction terms |
| Can the buyer back out? | Yes, during our 14-business-day inspection period | Depends on the terms and any reserve price |
| Price | A written as-is price in the purchase agreement, from us, based on what investors pay for similar properties, paid in full in cash at closing, with no loan contingency. It changes only if our inspection finds something we didn't expect. Usually lower than a listed sale | Set by the bids |
Show full details
| Topic | Sell to Star Thing LLC | Sell at auction |
|---|---|---|
| Commission | None. If we assign, our fee comes from the difference between your price and what the buyer pays | Fees vary by auction company and by sale. Ask, in writing, what you pay and whether bidders pay a premium |
| Closing costs | We pay all of them | Set by the auction terms and local custom. Ask who pays which costs |
| Repairs | None. We buy as-is. If our inspection finds things we didn't expect, we may ask for a lower price | Depends on the auction terms. Ask whether the property is sold as-is |
| Buyer's loan | No financing condition in our contract. During the inspection period we may still cancel, including if we can't buy, partner on or assign the contract | Depends on the auction terms. Ask whether bidders must pay cash or may use a loan |
| Can the buyer back out? | Yes, during our 14-business-day inspection period, if we decide in good faith not to go ahead, for example because of the property, its documents, or whether we can buy, partner on or assign the contract. If we don't confirm in writing by then, the contract ends on its own. After that, only for reasons the contract lists, such as a title or road-access problem, damage to the property, or a missed closing date. If we fail to close for any other reason, you keep any earnest money or option fee. That is your only remedy, unless your state's law gives you more, and it is $0 if your contract has no earnest money or option fee | Depends on the auction terms, including whether there is a reserve (a minimum price). Read them before you sign |
| Visits to the property | Scheduled visits by inspectors, contractors and possible assignees, with 24 hours' notice. You may be there | Ask the auction company how and when bidders can see the property |
| Paperwork | We prepare the contract. A title company or closing attorney handles the closing | The auction company and a title company or closing attorney. Ask what you handle |
| Mortgage, liens, back taxes | Paid from your proceeds at closing | Paid from your proceeds at closing |
| Price | A written as-is price in the purchase agreement you sign, from Star Thing LLC, based on what investors pay for similar properties, paid in full in cash at closing (Section 1 of our contract; any earnest money or option fee counts toward the price), with no loan contingency and no repairs. It changes only if our inspection finds something we didn't expect. Our price is usually lower than an open-market sale, and it isn't an appraisal. If we assign, our fee comes from the difference | Set by the bids, under the auction terms |
Our column is what our purchase agreement says. Your state may add terms: see what you sign in your state.
When an auction is better for you
- You want a set sale date and competitive bidding.
- The property is likely to draw many bidders.
- You've read the auction terms, including any fees and any reserve (minimum price), and they work for you.
Which option may fit you?
Three questions. Your answers stay in your browser.
Questions
What should I ask an auction company?
Ask, in writing, what fees you pay, whether bidders pay a premium, whether there is a reserve, who pays closing costs, and when the sale closes.
How is selling to you different?
Your price is the price in our written contract, and there's a fixed end date: if we don't confirm by business day 14, the contract ends on its own and you're free to sell to anyone.
Do you pay the closing costs?
Yes. We pay all closing costs. Any mortgage or liens are paid from your sale proceeds.
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