“Going Once, Going Twice, SOLD!” Real Estate Auctions

Did you know that you can buy real estate at Auction—very much like a used car? In today’s real estate environment, auctions have become a very viable form of asset liquidation—and a great investment opportunity for those who have the means to buy!

First, always consult with a Realtor- as you are welcome, and encouraged by every auction house to have your own representation when buying real estate at auction. This is important because most auctions don’t allow for contingencies, like a home inspection, a radon test, or even financing. A Realtor can help you pin point auction properties, review and research them thoroughly before auction so you are the most educated buyer you can be.

Second, please don’t mistake auctions for total liquidation-most real estate sellers still have the right to refuse a final bid, as well as any contingencies that came with it. On occasion auctions are absolute-but that is disclosed at the auction itself.

Third, be prepared with your certified funds at the auction site- they don’t accept personal checks-as well, most auction bids require a “buyer’s premium” of at least 5% that is added to the final bidding amount—so make sure your funds are adequate to cover what you are bidding, and make sure you aren’t spending more money then you are willing!
Finally, make sure you understand what you are investing in win bidding—this is why having your own Realtor with you is important, he/she can help smooth out the wrinkles and help you make sure that the purchase you are making is the right one for you!