How to Register, Bid, and Win in a Real Estate Online Auction with NeXstep!

Online real estate auctions offer a unique opportunity to acquire properties quickly and efficiently. A very transparent and open process for all involved.
Here’s a step-by-step guide to help you navigate the bidding process:

Step 1: Registration

  1. Choose your property: Select the auction and/or property that you wish to bid on.
  2. Create an Account: Sign up on the NeXstep platform by providing the required registration information, including your name, contact details, and a valid credit card. The credit card is used to verify your account validity, a hold of $500. Is initially placed on the card to ensure each bidder is vetted and pre-qualified. This is not a charge and will be removed following the auction.
  3. Identity Verification: Complete any required identity verification steps, such as providing identification documents or any specific requirements for registration for that specific auction. Each auction may require different validation documents for example, a trustee sale requirement may have different requirements than a bank owned property auction.
  4. Review Terms and Conditions: Carefully read and understand the platform’s terms and conditions, including fees, bidding rules, buyer premiums, and deadlines.

Step 2: Property Search

  1. Browse Listings: Explore the available real estate listings on the platform. There may also be personal property auctions, virtual estate sales and many other items available.
  2. Property Details: Click on individual property listings to access comprehensive information, including property photos, descriptions, starting bids, and any relevant reports (e.g., inspections, appraisals).
  3. Set a Budget: Determine your budget for bidding, taking into account the starting bid, potential bidding increments, and any additional costs like buyers premium, closing fees or taxes.

Step 3: Placing Bids

  1. Property Research: Conduct thorough research on the property you’re interested in. Investigate its market value, condition, and any potential issues. Attend open houses or contact the auction
  2. Bidding Options: Auction platforms typically offer various bidding options:
    • Manual Bidding: Place bids manually by entering the desired amount.
    • Proxy Bidding: Set your maximum bid, and the system will automatically increase your bid incrementally until your maximum is reached or you win.
  3. Bidding Strategy: Consider your strategy. Some bidders prefer to bid early and consistently, while others employ a “sniping” strategy by waiting until the last moments to bid. The NeXstep platform uses Anti-Sniping software which will extend bidding for a set amount of time, allowing for a competing bidder to increase their bid.

*We highly recommend the Proxy Bidding method to ensure that your bids are recognized and that you do not experience any technical difficulty on the day of auction.

  1. Monitor Bids: Keep a close eye on the auction’s progress. Most platforms will notify you if you’ve been outbid. Be sure your notifications and reminders are set.

Step 4: Winning and Payment

  1. Winning the Auction: Congratulations! If your bid is the highest when the auction ends, you will be contacted by the auctioneer regarding the contract details, earnest money deposit and next steps.
  2. Contract: You’ll receive a contract detailing the final bid amount, any buyer’s premium, and additional fees. This contract will be sent via e-signature to the email address used during registration.
  3. Earnest Money Deposit: The earnest money deposit indicated in the terms and conditions for the auction will be due within 24 hours following the auction unless otherwise stated.

Step 5: Property Transfer

  1. Coordinate Transfer: Work with the auction manager and relevant parties (e.g., real estate agents, lawyers) to facilitate the transfer of the property. Closing is typically in 30 days with the balance due on or before that date.
  2. Meet Deadlines: Adhere to the deadlines and requirements outlined in the auction terms for completing the property acquisition.

Step 6: Ready. Set. Bid!

Always be aware of the auction platform’s rules, be prepared to act quickly, and seek professional advice if needed.

Happy bidding, and best of luck buying your real estate!

Questions? Paige Holt 423.702.6287

Paige showing a property sheet to a client