Bright Home Auction Checklist: Pre-Bid Due Diligence

Presented by R.J. Timlin – Real Estate Professional and Tim Gehron – Lead Auctioneer

Conducting due diligence before bidding on a property is essential. This checklist outlines the critical steps to thoroughly evaluate a property and its auction terms, ensuring you are well-prepared for the auction process.

Essential Steps in Pre-Bid Due Diligence:

  1. Review Property Details
    Carefully examine the information provided on the property details page, focusing on:

    • Property description

    • Sellers Property Disclosure

    • Occupancy status

    • Auction terms and funding requirements

    • Price and tax history

    • Recent market activity

    • Neighborhood and school district details

  2. Access and Analyze Uploaded Documents
    Download and review documents such as contracts, title records, and additional disclosures.
    Pro Tip: Ensure you are logged into your account to access all files.

  3. Understand Auction Disclaimers
    Read and understand all disclaimers to gain a comprehensive grasp of the auction terms and your responsibilities as a buyer.

  4. Research Local Occupancy Regulations
    Based on the property’s occupancy status, investigate local laws and procedures for managing occupancy in the property’s city or state.

  5. Inspect the Property

    • All Bright Home Auction properties allow home inspections.

    • If the property is accessible, visit it in person.

    • For restricted-access properties, our agent will assist you. Conduct a drive-by to evaluate the exterior and neighborhood.

  6. Examine Title Information & Confirm Ownership

    • Review the preliminary title report for liens or encumbrances.

    • Consult the municipal records office for further details to address potential issues with the deed.

    • Most sellers provide a Guaranteed Title, ensuring a clear title at closing. However, buyers are advised to conduct independent verification to avoid unexpected claims or encumbrances.

Understanding the Buyer's Premium & Commission Structure

The Smart Way to Sell Your Home
100% Transparent, 0% Buyer’s Premium, and Just 2% Seller Commission!

Led by R.J. Timlin, Real Estate Professional at RE/MAX Reliance, we’re revolutionizing real estate transactions with a fair, transparent, and cost-effective approach.

✅ Sellers Pay Just 2% Commission – No hidden fees, just a straightforward process.
✅ No Buyer’s Premium – Unlike traditional auctions that charge up to 10% extra, buyers only cover their agent or attorney fees ($1,500–$2,000).
✅ Buyers with an Agent – Must negotiate their agent's compensation separately.
✅ Flexible Seller Options – Depending on the offer, sellers may be open to negotiating buyer concessions.

Seller's Responsibilities:

  • Pay 2% Real Estate Commission.

  • Sellers are not responsible for paying the buyer’s agent commission. Buyers must negotiate and cover their agent’s fee if applicable.

Why Due Diligence Matters

These steps are not just a formality; they are key to understanding the property’s value, potential challenges, and auction terms. Partnering with experienced professionals like R.J. Timlin and Tim Gehron ensures expert guidance throughout the process.

For more information or personalized support, contact Bright Home Auctions today. We are here to help you navigate the auction process with confidence.

Due Diligence Requirements

Real estate auctions require all due diligence to be completed before the auction date and making a bid.
Real Estate Sold at Auctions is Sold "AS IS" – NO Contingencies.

Comprehensive Due Diligence Checklist

1. Property Inspection

A licensed real estate inspector checks the property’s structural integrity and overall condition, ensuring compliance with local zoning laws and building codes.

2. Title and Ownership

Confirm ownership details to ensure the seller has legal rights to sell. Obtain a title report to check for liens, easements, and other encumbrances.

3. Survey and Boundaries

Obtain a property survey to confirm boundaries and easements.

4. Financing

Understand all costs, including closing costs and mortgage terms.

5. Homeowners Association (HOA)

Review HOA documents, restrictions, fees, and special assessments.

6. Homeowners Insurance

Required for homes with a mortgage. Obtain information on coverage and premiums.

7. Property Taxes

Understand the property’s tax obligations and payment schedule. Be aware of potential changes in property tax rates.

8. Utilities and Services

Confirm availability and cost of essential utilities such as water, gas, electricity, trash, and internet.

9. Environmental Factors

Check for potential environmental hazards like flood zones or earthquake risks.

10. Pest Inspections

Consider hiring a pest inspector to check for infestations or damage caused by pests.

Be informed. Be prepared. Bid with confidence.
For any further inquiries, reach out to Bright Home Auctions today!