AGENTS BROKERS faqs

AGENTS/BROKERS - how to bid | what are the fees | commission

I am an Agent and I have a client interested in the property for sale.

WHAT IS A BIDITHOMES AUCTION?

ANSWER: Bidithomes Auctions are MERE postings on MLS in the same way as any other brokerage would offer a property for sale. Sellers benefit from hiring an Auctioneer for the sale that works as a TEAM with Realtors to obtain the highest amount possible in a short period of time.

Once the auction sale process is "in session" bids, bidding commences. Buyers, Sellers and Brokers can visit the website via their computer or mobile device to view the current bid online in real time.

HOW TO BOOK/SCHEDUAL A SHOWING REQUEST AT THE PROPERTY?

ANSWER: For showing requests simply login into your local real estate board's agent/broker login and handle it the same as normal practice.

Brokers from any brokerages can show their clients through the home within indicated time slots and may also request private time slots though an online portal called Showing Time. We do recommend as much time leeway as possible for showings.

realtor faq's

I am an Agent and my client wants to place their bid for the property.

WHAT FORMS DO I USE TO PLACE A BID ON THE PROPERTY FOR SALE?

ANSWER: On the auction listing page of the Bidithomes posting on MLS (Agent/Broker local real estate dashboard) are the pre-filled bidding forms: (OREA Standard Form - APS Agreement), (Bidithomes Bidder Registration Agreement).

WHAT IS REQUIRED ON THE BIDDING FORMS?

ANSWER: The first step is to download the (Bidithomes Bidder Registration Agreement) from your local real estate board's agent/broker login section. Our Selling details can be found on the auction listing page of the Bidithomes posting on MLS.

YOU MUST ATTACH THE SIGNED COPY OF THE BIDDERS REGISTRATION AGREEMENT WHEN YOU SUBMIT YOUR CLIENTS APS AGREEMENT.

HOW DO I PLACE A BID?

ANSWER: The second step is to download the (Bidithomes OREA Standard Form - APS Agreement) from the same section as the bidder registration agreement. WHEN BIDDER WANTS TO INCREASE THEIR BID VALUES WHEN THEY ARE OUT BID FROM ANOTHER PARTICUPANT, SIMPLY SUBMIT AN ADMENTMENT TO THE APS WITHTHE NEW VALUE. Then send these signed documents electronically to the auctioneer.

The APS agreement terms & conditions of the sale are clearly identified in the standard OREA forms used by all licensed realtors.

realtor faq's

I have won the auction, what is the total purchase price?

WHAT IT THE TOTAL PURCHASE PRICE?

ANSWER: The purchase price is calculated by the accepted bid amount which the Buyer has agreed to pay an additional processing fee plus HST, for the associated Auctioneering fees & expenses, which will be added to the total purchase price of the property.

EXAMPLE (A): The accepted winning bid amount is $500,000.00. The processing fee 8% would be $45,200.00 including HST. The purchase price would then be $545,200.00.

WHAT IS THE DESPOSIT REQUIRED?

ANSWER: The mandatory deposit is required within 24 hours of acceptance of the Agreement of Purchase and Sale (APS), the winning buyer agrees to pay a non-refundable deposit of 5% plus HST, payable to Action Auctions Inc.

EXAMPLE (A): Using the same above example of the accepted winning bid amount is $500,000.00. A 5% deposit would be $28,250.00 including HST.

realtor faq's

I am an agent, what is the commission received for bringing a buyer...

Realtors will be compensated equal or more than the convention real estate method through the processing fee that applies. If the cooperating realtor/broker is successful in obtaining the total processing fee, and when all conditions on funds being received have been lifted, the Realtor/Broker commissions will be paid out of the processing fee within 14 days.

BROKER/AGENT COMMISSIONS ARE PROTECTED

realtor faq's

Auction FAQ for Real Estate Agents

Summary: not every seller wants to use a real estate agent to sell their property, for many reasons as we all know. Auction companies utilize real estate agencies across Ontario. The auction company retains a real estate brokerage and the seller is the client of the auctioneer and a limited extent the brokerage as well.

Commissions are almost always fair market, where the Buyer’s agent can expect 2 to 2.5% on most auctions (this is part of the Auction Company’s total charge to the Buyer on top of the winning bid).

What is the Listing Agency For?

Posting the property to MLS,
The posting brokerage will be a guaranteed commission amount agreed upon the realtor and the auctioneer,
For an exchange for the realtors work a much higher than normal posting fee is paid to the realtor.

What is the Auction House Responsible For?

Answering questions from prospective buyers and their agents,
Collecting and reporting all bids,
Collecting deposits, keeping buyer records.

What is a bid? ANSWER: A bid is a signed agreement of purchase and sale, without conditions. It can also be known as a “Purchase of Sale Agreement” or an “Offer”.
How do I submit a bid? ANSWER: You must sign a bid registration form in order to submit your bid to the auctioneers. You will sign a bid and submit it through email with your Realtor directly to the posting realtor and the auctioneer.
What is a soft close? ANSWER: if in the event a bid is received during the last 24 hours of the auction close, then the auction will be extend for an additional 48 hours as a soft close.
What is a Buyers’ Premium? ANSWER: This is the cost of running the auction which is charged to the buyer in a addition to their bid amount. This is fee that is determined by the auction company.
Do I need a deposit? ANSWER: Yes, you still need to provide a deposit when your bid is accepted.
What is a reserve? ANSWER: This is the lowest amount the seller will take in order to close the auction.
Do I need a Realtor when bidding? ANSWER: Yes, the auctioneers advise you to be represented by a Realtor to help you through the processes. If in the event you do not have a realtor then the posting realtor can provide a buyer customer service to complete the processes.
How do I know I’m the only offer? (Or how do I know how many offers I’m competing against?) ANSWER: The auction company’s website will have the number of registered bids online for everyone to see.
What are my next steps after my bid is accepted? ANSWER: You will submit your non-refundable deposit to the auctioneer in trust.
What do I need to provide my financial institution after my bid is accepted? ANSWER: Your lender will need a copy of the Agreement of Purchase and Sales and the MLS listing. Please consult with your financial lender to confirm all the documentation that they will require.
Where does my “Buyers Premium” go? ANSWER: Your buyer's premium goes to the auction company. From the buyer’s premium the auction company disperses funds to your realtor and any other parties involved in the auction process.
What do the auctioneers do with my bid after it's accepted? ANSWER: the auctioneer keeps a record of your bid for the time required by law. Once that time period has expired your bid will be destroyed. If you are the winning bidder the seller will counter sign your bid and copies will be distributed to you, the seller, the posting realtor, the auctioneer, and both attorneys involved in the closing of the transaction.
What Cash do I need upfront? ANSWER: You will need the deposit and your Buyer's Premium.
What Cash do I need on Closing? ANSWER: You will need your down payment and any remaining buyer's premium that is due.
Who holds my deposit after acceptance? ANSWER: The auction company holds all deposits in trust until the completion of the transaction.
Does my bank still need to appraise the property? ANSWER: Your lender may require an appraisal. Some properties will have an appraisal report upfront. This requirement is dependent on your lender.
Is there a different process to get financing when buying an auctioned property? ANSWER: Any financing which you may require before making a non-contingent bid should be made in advanced of submitting to the posting realtor and auctioneer. This is if you will require financing to proceed to with a non-contingent bid: in the alternative a down payment and all the necessary documents and approvals will apply.
Do Realtors get paid if they bring a buyer? ANSWER: Yes, the percentage amount will be advertised will be advertised on the realtor side of MLS.
Who pays the Realtors? ANSWER: The auction company is responsible for compensating the co-operating realtor per the MLS listing.
When do the Realtors get paid? ANSWER: The Realtors get paid after the closing, once part of the processing fee is submitted.