Real estate auctions can be hit or miss, especially if you have never been to a real estate auction before.
So what can you learn about a property that is about to be auctioned off? Plenty.
Seeing the Property
Auction houses host open houses so that the potential bidders have an opportunity to walk through and see the properties before the auction takes place. The description of the property is also available. This allows people to decide in advance what properties they want to bid on along with their maximum offer. Other times, a drive by is the only way that a potential buyer can see the property. Potential buyers can also check websites listings for foreclosures.
Payment
Bidders will need to bring a cashier’s check along to the auction. The winning bidder must also pay auction and bidding fees before putting a deposit on the property and before leaving the auction site. The winning bidder will also go through a closing and escrow just like any other standard real estate purchase.
Real estate investors, who can pay cash, are usually the winning bidders at these types of auctions. If the auction allows for financing, Powell Auction recommends that you find a lender who will prequalify you before the real estate auction. Some lenders may have restrictions when it comes to financing an auction property.
The Benefits of Real Estate Auctions
Real estate auctions allow buyers to snap up a bargain, and because there is more risk involved, you will not have as much competition. However, remember that not all real estate auction properties are great deals, but the potential is certainly there.
Doing your research and having a solid plan in place can help you win the house of your dreams in a real estate auction. Do your due diligence and you just may end up finding a great property at a real bargain!
For more information on real estate auctions, check out the real estate auctions listings on Powell Auction.
Call or click for a real estate auctions calendar today.