Real estate auctions are very common, especially recently with the surge of foreclosures. A potential homebuyer can certainly purchase a great home from auction at a very affordable price. However, there are things you must know about the auction process and how to approach this circumstance appropriately.
Before you attend your first real estate auction, you must understand the scale of what you’re about to do. You must take the auction seriously and bid on a home within your limits. Bidding on a home on a whim is not a good idea.
Have a budget in mind so that auction time is not wasted and so that a home you can’t afford can rightfully be purchased by a more financially sound person.
Know the rules
Learn the rules and restrictions of the auction company or real estate agency for purchasing an auctioned home. Also observe how others are behaving. You’ll notice that real estate auctions are not a shouting ground. All you need to do to place a bid is maintain eye contact with the auctioneer.
As much as you might want to purchase an auctioned home, don’t go to the auction with the intention to compete against others. Make sure you are respectful towards those bidding as well as towards the auctioneer.
The money to be paid for the auctioned home might be due at the time of purchase or within a few days so make sure you have the funds available.
Smith & Co. has been conducting real estate auctions for many years. To attend one of ours or to learn more about the real estate auction process, be sure to give us a call.