Some of the best ways to get a great deal on a commercial building is to buy one at auction. Generally, prices are pretty low, and there is not too much competition out there. If this is your first time buying a building in this manner, here are some helpful tips for you.
Before the Auction:
Find out as much legal information about the property as you can, and contact a commercial real estate lawyer to look over the paperwork for you. This way, no surprises come when it is too late to back out. Also, be sure to have your finances in order as well. Oftentimes, you will need to put a deposit down on the day of the auction. Be sure to investigate the property, they’re usually sold as is; it’s wise to make sure that you’re not getting yourself into a money pit.
At the Auction:
Make sure you have your checkbook with you with at least one check for your deposit. Also, remember to bring a few different forms of id (driver’s license, passport, utility bills work well). Pay attention to the order of sale, this will be an up-to-date list of all the properties for sale at this particular auction.
After the Auction:
If you were the highest bidder on the property that you were holding out for, congratulations! Typically, with commercial property auctions there will be 30 days to close on the property. It is very important like we mentioned in the beginning to have your finances in order, if you do not close in the 30 days allotted for the sale, you will forfeit your deposit.
Best of luck with your commercial property auction search. If you are looking for a property that just needs a little TLC to be as good as new, this will be perfect for you and your new business venture.