Auctions are great real estate investment opportunities and an easy purchase when you know what you are looking for. Buying at an auction is a lot less painless than buying through an agency.
KNOW WHAT YOU WANT
The most important step in the real estate auction process. Make sure you know what you are looking for. This will help you save time by only going to the auctions that have what you are looking for. Make sure to read all details for the auctions that have the real estate you are interested in. Not all auctions are the same. There are a variety of differences depending on seller and auction company agreement.
DO YOUR RESEARCH
With auctions, some properties can be old run down fixer-uppers and require a lot of work. If you have a budget of $350k and there’s a possibility of winning the auction for $300k, don’t forget to take into consideration fees and costs to rehab the property. Research the location of the property, the auction company, the city the property is located in, etc. Educating yourself on the auction process is a huge key to your success that can save you much pain while giving you an advantage over others.
HAVE YOUR FINANCES SECURED
Cash is always king, however we understand that cash isn’t always feasible. If you are not a cash buyer then prequalifying with a lender in advance is a must. When prequalifying, let the lender know of the auction terms. All financing must be secured prior to the auction.
REGISTER TO BID
You’ll need to register online or on-site the day of the auction in order to bid. Knowing the registration process for an auction is important. The earlier your registration the better. This helps show your serious interest and allows you more time for information and updates to the auction as they happen. If you plan on registering on site, plan on getting there early.
SHOW UP AND BID
Now it’s the fun part. Show up and bid to win!
If you have any questions about the auction process or any upcoming real estate auctions contact us. We would love to help.