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.
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.