Here’s the run-down

Auctions are easy for Buyers and offer excellent buying and investment opportunities.

Looking to find motivated Sellers? Locate an auction and you’ve found a motivated Seller! Auction Sellers are serious and interested in trading their property quickly. Need to reinvest 1031 monies? Auctions offer short timelines for sale and transfer of property. Auctions provide Buyers with smooth, no-hassle transactions. The terms and timelines are posted in advance and allow Buyers to make definite plans for purchasing.


PastAuctionImage_41096_14400


Real Estate Auctions – How to Buy Real Estate at Auction


 

Identify the Property of Interest

With hundreds of Auctions being conducted daily, there are many properties to choose from. Search the

Auction calendar for properties that match your needs and read over the detailed descriptions to ensure

the property is right for you.

 


 

Research the Property

Buyers should find out as much as possible about the property. Become intimately familiar with the

features, including pros and cons. Request a Property Information Package (PIP) from the Auctioneer.

The PIP contain photos, detailed descriptions, terms and conditions of the auction, a sample Purchase &

Sale Contract, property taxes & assessments, maps, plans and many other pertinent documents.

 


 

Perform a Physical Inspection

Buyers may inspect the real estate during a scheduled Open House or request a private preview of the

property with the Auctioneer. Buyers purchasing at auction are taking the property as-is, where-is, with

any and all faults, so it is imperative to see the property to determine value and allow the Buyer to bid

with confidence.

 


 

Make Your Financial Arrangements in Advance

Buyers at real estate auctions must have the ability to close, with cash terms, within 30 days. Since

there are no financing contingencies, buyers need to prequalify with a lender, make them aware of the

Auction terms and secure financing prior to bidding. If money will need to be moved to have available

capital for the sale, contact your financial consultant to make the funds available for deposit and closing

as early as possible.

 


 

Observe another Auction Hosted by the same Auctioneer

Check the auction calendar for an auction that will be held before the sale for the property of interest.

Become familiar with the auction process and ask questions afterwards to clarify and understand the

 


 

Get Registered to Bid

Buyers may register to bid online or onsite on the day of the auction. The earlier you register the

better because it makes the auctioneer aware of your interest and will provide immediate access to

information and updates. If the auction will be held onsite, show up early.

 


 

Prepare Questions about the Sale/Property

Although the Auctioneer will offer an opportunity to ask questions at the auction, it is best to address

your questions in advance of Auction day. This will provide an opportunity to ensure proper preparation

and understanding.

 


 

Determine Your Maximum Bid

After researching and inspecting the property and determining your financial capabilities, set a

bidding limit. Keep the buyer’s premium, required deposit and closing costs involved in mind. If

deemed necessary, a Buyer may leverage professional advice from a building contractor or real estate

 


 

Bid to Win

The Buyers who typically win are the ones who put their best foot forward. There is only one winning

bidder per property and that is the one that submits the highest bid first. Bid aggressively until you have

reached your maximum bid or until the Auctioneer closes the sale.


Leave a Reply

Your email address will not be published. Required fields are marked *

Post comment