Arizona Home Auctions does not auction off real property. Arizona Home Auctions provides a marketing platform that allows private owners, investors, wholesalers and agents to auction and sell their RESPA's (Real Estate Sale & Purchase Agreements).
How to Bid on a RESPA
Getting ready to bid
Before you bid on a RESPA, make sure to do your due diligence. It’s important that you are well versed in the RESPA property and feel comfortable in purchasing it if you are the winning bidder.
Once you are ready to bid, register for the auction. Once you have been registered, you can start bidding on any RESPA within that auction event.
Bidding in Auction
There are two ways to bid, on the RESPA Property Details Page of the asset or from your Dashboard.
When an auction has opened, a countdown will appear in the bid box displaying how long you have to submit your final and best offer on that property. Under the countdown you will see the “Starting Bid”. This is the starting amount for that asset. The bid you enter must be at least the “Starting Bid” amount.
You either enter your bid into the field or adjust it by using the plus (+) sign.
Minimum Bid Increment
This amount is the minimum additional increment you must enter to place a bid. For example, if the “Current Bid” on your RESPA property of interest is $150,000 and the minimum bid stated on the RESPA Property Details Page is $2,000, your next bid must be $152,000 or higher. If you place a bid higher than $152,000 this becomes your “Proxy Bid”.
Don’t have time to sit at your computer and outbid your competitors in an auction? No need! Use our “Proxy Bid” system to set your maximum bid and walk away. Here’s how it works. You want to place a bid on a property and the maximum you will pay is $250,000. The “Starting Bid” is $200,000. Enter $250,000 on the RESPA Property Details Page when the auction begins. You will be the current high bidder at $200,000, since that is the “Starting Bid”. The system will bid you up in increments but only if you are outbid by another bidder, keeping you the high bidder until your maximum proxy bid has been reached. If your maximum “Proxy Bid” is reached and you are outbid you will receive an email notification giving you the opportunity to enter a new “Proxy Bid”.
Highest and Best
When participating in a pre-auction event, you submit a single sealed offer on the RESPA Property Details Page of your property of interest. If there are multiple offers on a RESPA when the pre-auction period ends, our Bid Review team requests each party’s Highest and Best bid to determine the most viable offer. Each party is notified and given the same deadline to respond with their Highest and Best. When all parties have provided their Highest and Best or the deadline has expired, the Bid Coordinator will submit the highest offer to the Seller for consideration.
During this Highest and Best process, all parties are blind and Bid Coordinators are not allowed to share information regarding any other offers. The RESPA property remains available for bidding until the Seller receives an “Accepted Offer”.
Please note that most RESPA properties in online auctions have a “reserve”, the unpublished minimum price a seller is willing to accept. The seller reserves the right to accept bids below reserve. Although the reserve is the ideal price a seller wishes to get for their RESPA, it is not set in stone.
If you are the highest bidder upon auction close and you have not reached the seller reserve, you may receive a call from our Bid Review team for your Highest and Best offer. Your Highest and Best offer should be the maximum amount you are willing to pay for the RESPA. Bidders are encouraged to do their due diligence before placing offers on our platform. The Bid Coordinator assigned to the property will communicate your Highest and Best offer to the seller. The seller reserves the right to counter your Highest and Best and begin negotiation to reach a mutually agreeable price. The assignment contract process begins upon seller approval of the offer.