Buyers should always come to the auction financially prepared to buy the house, and some money is due the day of the auction if you’re the winning bidder. This money is a buyers premium, which varies from brokerage to brokerage. This amount is always stated in any Real Estate Auction advertisements.
Homes at auction are sold ” as is, where is, with no warranty or guarantee” . Which means that what you see, or not see, is what you will get. Liens and various other issues could possibly exist with the title so it is important to do your diligence before purchasing at house at auction, or find a realtor if you need help with this.
After the auctioneer is finished calling bids, he or she will collect the buyers premium and start the contract. The premium is paid to the real estate company and is not used as a credit toward the buyers closing.
The contract then gets written and the terms are discussed. If you are buying the house at auction with cash, then closing can occur within a couple of days of the sale, where a deed is recorded and transferred to the properties new owner.