
Learn about the population size, median age and income of residents, unemployment rates, and general weather conditions in the area where you are looking to buy. 



These are important disclaimers for the property that you must know before bidding. Disclaimers include risks, fees, and other notices on buyer and seller responsibilities.



There's a lot to think about while bidding on a property, but stay focused! Follow your bidding strategy and stay engaged until the end of the auction, even if you get outbid. Here are a few things to watch for during bidding:
 
**Starting Bid** - The opening bid price for an available property at an auction.

**Reserve Price** - The minimum price the seller is willing to accept for a property in an auction. Note that a seller is not typically required to share this price with potential buyers. **If not met, sellers will still review the highest bid and may accept it or counter offer.**

**Highest Bid** - The highest current bid that has been placed during the auction.

**Minimum Bid Increment** - The minimum amount a bid must increase during an auction. Increments are pre-determined based on the current winning bid.

**Your Budget** - The budget that **you** set for your property when doing your due diligence.

**Your Bid** - The amount **you** offer for a property, in competition with others in an auction event, If you meet the seller's minimum price and you have the highest bid, you typically win the auction.

[What Can I Expect During the Bidding Process?](https://solutionstar.zendesk.com/hc/en-us/articles/5022442709652-What-Can-I-Expect-During-the-Bidding-Process-?utm_medium=referral&utm_source=Auction-Simulator&utm_campaign=AS&utm_term=in-game&utm_content=pdp-tooltip)



Once you finish participating in the auction, your bid will be submitted to the seller. They may accept your offer, decline your offer, or counter your offer with one of their own.

Be sure to check your dashboard to see the outcome of your auction.



It's critical to have a plan in place before participating in an auction so that you can feel confident. Here are some items to think through so you're prepared before the bidding begins:
 
**Your Maximum Bid** - The maximum amount of money you have budgeted to bid on the property. 

**Estimated Renovations** - The estimated cost range for all repairs needed on the property.

**Transfer Tax** - Fees added by the local government when ownership or title is transferred to complete the sale of the property. Amount will vary based on location.

**Closing Costs** - 3% - The sum of costs associated when finalizing the sale of the property. These may vary based on property and real estate company. 

**Buyer's Premium** - A fee to be paid by the winning bidder, typically the greater of 5% of the winning bid or $2,500 dollars. This is typically due to the asset type.

**Your Total Initial Investment** - The estimated amount of money you are budgeting to invest in the property.

[Learn more about bidding on the Xome blog.](https://www.xome.com/blog/your-pre-auction-checklist-what-you-need-to-do-before-bidding-on-an-auction-property?utm_medium=referral&utm_source=Auction-Simulator&utm_campaign=AS&utm_term=in-game&utm_content=pdp-tooltip)



Properties that only allow all-cash offers.



This section contains information on comparable properties in the same area. Number of rooms and square footage may vary per comparable property, but this information can be helpful when setting your **maximum budget**.



**Viewing a property's title information is a must** when you're completing your due diligence research before committing to a bid. There could be liens, judgements, or other claims added to the title. 
 
Review the preliminary title and contact the relevant municipal department for additional information. You can request a copy of the most recent title for any properties you are interested in bidding on (be sure to ask about any related fees).



Properties that allow you to pay for them over time, if you can get approved for a mortgage loan.



Find out the median market price for similar homes in the neighborhoods where properties you are looking at are located.  



Check out the public and private schools in the area, the neighborhood walk score, and how long it might take to commute to popular work areas or the city center. 



Properties sold in certain online auctions that don't require the winning bidder to pay a premium (typically 5% of the winning bid or $2,500, whichever is greater).



This section provides details about the property at a quick glance. Important features to note are **property location**, **vacancy status**, and **square footage**.
 
Keep in mind that the property description can disclose additional information not listed in the table, such as the occupancy numbers or features of the house, such as garages or pools.



Once you've registered for an auction, you must wait to bid until the auction starts on its designated date and time. In real life, Xome auctions typically start on Saturday with bidding closing on Tuesdays and Wednesdays.
 
Whenever the auction goes live, be ready to bid! Just be sure to remember your maximum budget (fees included!) and bid wisely.



The purpose of performing **due diligence** is to make sure you are bidding with confidence and are comfortable with your bid amount in relation to the condition of the property. 

**If you're not ready** to proceed, **or are unsure** if this is the right investment for you, **don't bid in the auction**. It will save you and the seller time, energy, and ultimately money.
 
Depending on the property, you may be able to visit it inside and out and conduct an inspection. If not, drive by the property to check out the outside and the surrounding neighborhood.



Properties that have been recently inspected and are thought to be vacant. Note that this is not a guarantee that the property will be vacant when the buyer assumes possession.



The displayed estimated value is not prepared or provided by a licensed appraiser, does not constitute an appraisal of the subject property, and should not be relied upon as such. 

Data used to generate the estimated value does not include information that could be derived from a visible inspection of the subject property and its surroundings. 

The condition of a property can materially affect the accuracy of a property's estimated value.


What Are Bank-Owned Properties?

What Are Non-bank Owned Properties?

What Are Second Chance Foreclosure (CWCOT) Properties?

What Are Short Sale Properties

What Are Foreclosure Trustee Properties?

View the Glossary

What does "sold subject to seller approval" mean?

How to Pay for an Auction Property: 4 Ways to Fund Your Bid

The Four Real Estate Investment Strategies New Investors Should Know

What to Expect When Buying an Occupied Property

Is Fix and Flip Real Estate Investing Right for You? Four Questions to Ask and Four Tips for Success

What Is an Auction and How Does It Work?

What does due diligence mean (and how do I do it)?

Do I need to register to bid in an auction event?

What Types of Properties Can I Buy at Auction?

What Do I Need to Consider Before Bidding on a Property?

Your Pre-Auction Checklist: What You Need to Do Before Bidding on an Auction Property

What Can I Expect During the Bidding Process?

What Can I Expect Financially When I Bid on a Property?

What do “reserve met” and "reserve not met" mean?

What Should I Include in My Due Diligence and Property Research?

What Do I Need to Know About Title Policies?


If you've had a change of heart and want to reconsider your budget, select **Cancel Registration** to return to the previous screen.

Real property auctions on [Xome.com](https://www.xome.com?utm_medium=referral&utm_source=Auction-Simulator&utm_campaign=AS&utm_term=in-game&utm_content=pdp-tutorial) are scheduled for specific dates, but in Xome Auction Simulator they're always one in-game week from when you register.

## Once you're ready, select **Wait for Auction**.
