People are always looking to get great deals on real estate and one of the ways they can do this is by buying real estate from an auction. Here is a step by step guide on how to do just this. The first thing you need to do is to get a list of the properties that will be auctioned off. This can be gotten directly from the auction house. Typically, buyers will have the option of being able to inspect the property before the auction day begins but they may not be able to inspect or see the property on the day of the auction. The bidder would do well to make sure all is known about the property before auction day begins.
The next thing to do is to find out how much the properties are worth. This can be done by checking with local real estate agents. They will charge a nominal fee to perform this service but it is well worth the cost as you will be armed with valuable knowledge before even stepping foot into the auction house.
By winning an auction, you are entering into a legally-binding contract. This means you better have financing taken care of before winning an auction. You may try to get pre-approved on a loan so that you know exactly how much you have to spend before going to the auction. Or you may have the funds already available, in which case you will already know what your spending limit is. This means you will not be on the hook for property which you cannot afford.
At most Real Estate Property Auctions you will have to pay a deposit of 10% of the final bid or $10,000, whichever amount is greater. The exact amount of cash will need to be paid so be sure you are armed with this type of cash flow. It will make things run much smoother and will ensure that you will not lose out on your winning bid.
Plan on getting to the auction early. You will need to show some form of identification with current address. In most auctions, a driver’s license will be perfectly fine for this. You will also need to sign specific documents stating that you are aware of and agree to the terms of the stated auction. This protects everybody involved but most especially the auction house from people winning auctions but not being able, in the end. to pay.
Try to be as discreet as possible when bidding upon the properties. This will keep people from unnecessarily driving up the bid price. Raise the numbered paddle slowly and quickly and try to look only at the auctioneer. As you can see, it is quite simple to bid on and win when you are dealing with real estate auctions. By doing this confidently with all the knowledge from this article, you will be fully prepared to win all of your properties.
