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.
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Auction Financing Available