Thinking about buying or selling property at auction in Tennessee? Here are the most common questions people ask — with clear, straightforward answers.

What is a real estate auction?

A real estate auction is a public sale where property is sold to the highest bidder under specific terms. In Tennessee, licensed auctioneers must conduct the sale, and most properties are sold “as-is, where-is.”

Why choose an auction instead of listing on the MLS?

Auctions are faster, more certain, and competitive. Sellers set the date, buyers compete in real time, and closing typically happens in 30 days or less.

What’s the difference between an absolute and a reserve auction?

• Absolute Auction: The property sells to the highest bidder, no matter the price.

• Reserve Auction: The seller sets a minimum acceptable price. If bids don’t reach it, the seller can choose not to sell.

What is a buyer’s premium?

A buyer’s premium is an additional fee (commonly 10%) added to the winning bid. Example: if the high bid is $200,000, the total purchase price is $220,000. This fee is paid by the buyer, not the seller.

How much money do I need on auction day?

Most auctions require a 10% non-refundable deposit paid immediately after the auction, plus proof of funds for the balance due within 30 days.

Can I use financing to buy at auction?

Yes, but you must already be pre-approved and able to close in 30 days. If your loan fails, you risk losing your deposit. Many buyers choose cash, bridge loans, or hard money for speed.

What due diligence can I do before bidding?

All inspections, title checks, and zoning research must be done before auction day. Auctions are almost always “as-is,” so buyers should complete due diligence in advance.

Who pays the auctioneer’s commission?

It depends on the auction terms. In most Tennessee auctions, the buyer pays through the buyer’s premium. Some auctions use a flat seller-paid commission instead.

What happens if the property doesn’t sell?

If the reserve price isn’t met, the seller may choose not to sell. In that case, the property can be marketed again or listed later. Marketing fees are usually still due.

How fast do I get possession after an auction?

Possession usually transfers at closing, within about 30 days. Buyers receive the property once the deed is recorded and funds are cleared.

Want to Learn More?

This page covers the basics, but each auction is unique. We’ll be publishing detailed blog posts on each of these FAQs so buyers and sellers in Tennessee know exactly what to expect.

Contact Jennifer Davis today to learn more about buying or selling at auction in Middle Tennessee.

📱 Call/Text 971-400-6420