There's an auction for a variety of industries, and real estate of one of those industries. Smart homeowners and home flippers shop for new properties in this way, and you might be wondering if you should do the same. Read below to learn about buying your home via real estate auctions.
Step One: Register For The Auction
Right away, the worst mistake you can make is showing up at a realty auction without any financial or mental preparation. The experienced buyers know that:
- You'll need to come to the auction with a top bid in mind
- You're required to come to the auction with cashier's checks in the minimum amount listed to participate in the bids
These are only two reasons why you won't be able to spontaneously participate. And, if you want to auction like an old pro, then you should investigate the property up for auction hours before you arrive to the auction.
Now, you won't be able to enter the property, but you might be able to look inside the windows, and you'll definitely be able to tour the exterior of the property if you have time.
Step Two: Start Bidding
This is the part where things become really intense. You'll hear the auctioneer start calling out bid prices, and everyone around you will politely (yet firmly) raise their hand to signal their interest in the current bid price. Be prepared to stick to your original bid cap—there will be those who are seasoned at intimidating other bidders by driving up the price of the bid without any real intention of placing the bid.
People like these want to make the purchase too intimidating for you to consider, or they want to make you spend more money than you originally planned. If you've placed the winning bid, then you'll be required to render your cashier's checks, along with other funding for your purchase. You'll be handed the keys to your new property, and then you can leave.
Warning: If you place the final bid and you aren't able to pay for the bid, then you'll be required to surrender your cashier's checks and you won't be handed keys to the property, since you couldn't afford the final bid price.
Step Three: Visit Your New Property
When you arrive to your new property, the real work begins. In many cases, the property will require a great deal of rehabilitation and renovation. However, you might welcome these type of projects if the location of your property is worth the investment. And, many property owners invest in auction properties with the intent of rehabbing them and selling them for a profit.
Buying homes via the auction process might be right for you if you're the type who loves excitement, hard work, and the possibility of scoring a property gem in at a lower price. Visit Metro Appraisal Associates for more information about real estate auctions in your area.