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Published:January 6th, 2010 10:02 EST
How To Buy Real Estate at Auction 101

How To Buy Real Estate at Auction 101

By SOP newswire2

1. Many of us find bidding at auctions a daunting task. However, a little bit of research and proper planning can help anyone bid successfully at auctions. Read on to know how to bid successfully at real estate auctions. 

Real estate auctions have seen a dramatic growth in recent years, in the United States. The advantages that an auction has, like a quick and an efficient way of getting cheap properties has made auctions a preferred mode of buying and selling properties. According to 2004 data, land and agricultural real estate witnessed the fastest rate of growth in sale through auctions (14.7%), followed by residential real estate and commercial real estate with a growth of 14.1% and 11.1% respectively.  

      Always inspect the property prior to the day of the auction.

 Remember  that  real  estate  at  auction  is  sold  "as  is,  where  is",  with  no  inspection  contingencies.  

   It is the responsibility of the purchaser to inspect the property and perform any due diligence prior to the sale. Inspection dates and times will be clearly spelled in the auction terms and conditions available prior to each auction. 

2.   Determine prior to the auction the price that you are willing to pay for the property. Remember  that in  most  cases  a  buyer`s  premium  is  added to  the winning bid in  order to arrive  at  the Total  Purchase  Price.

Be sure to read the Terms and Conditions of each individual auction.  

3.   Secure funding arrangements prior to the auction.

Remember that auction sales contracts are not contingent upon obtaining financing. Each  auction  is  different,  but  most  auctions  require  the  winning  bidder  to  place  a  nonrefundable deposit on the day of the auction. Usually  deposits  are  paid  in  the form  of  personal  or  company  check  or  some  form  of  certified  funds.  The deposit will be applied to the purchase price at closing. See the Terms and Conditions for complete details. If  you  are  the  winning  bidder,  you  will  sign  a  Bid  Confirmation  Form  as  well  as  a  sales contract immediately after the auction. At that time a closing date will be scheduled to occur no later than 30 days from the auction date.  

4.     Arrive at the auction site on Auction Day.

Arrive  at  least  30  minutes  prior  in  order  to  complete  bidder  registration  in  time  for  the auction.  Please  ensure  you  have  a  picture  ID  with  current  address  information.  You will also sign an acknowledgement during registration that you have read and understand the Terms and Conditions of the auction. 

Bring  the  required  non-refundable  deposit  with  you  should  you  be  the winning bidder.

Ask the Auction staff any last minute questions that you might have on the property.

Ask the auction Company if any financing available.

Bid during the auction by raising your bidder`s number.  It is your responsibility for the auctioneer and his staff to see and understand that you are bidding.

Sign  the  Bid  Confirmation  Form  as  well  as  the  sales  contract  if  you  are  the  winning  bidder. 

5. Be a Confident Bidder 

Although most bidders shy away from being the first one to bid, for an auctioneer, the person who starts with the bidding process always comes across as one who is genuinely interested in buying the property. Such a person has an edge over others in case the property does not reach its estimated value by bidding. In case a possibility of negotiation is there, an auctioneer may always turn to bidders he thinks are seriously interested in buying the property.  

6.  Close on the property within 30 days of the auction.

Smart investments are made at auction when purchased at fair market value.

Have a Great day at the Auction.

Below is an upcoming Auction example!

South Carolina Multi-Property Auction, Land & Commercial Bldgs ...

2 Commercial buildings plus acreage for sale at auction January 16, 2009. Marlboro and Chesterfield Counties, South Carolina. 

 

Auction Financing Available  Tomgloble@aol.com

Tom Simjian
203-506-0388