How to Buy Land at Auction

Parcels of land are auctioned off every day, and often for less than the land would go for in a straight sale. Land is often auctioned as part of an estate judgment or foreclosure. Both of these situations can result in low prices. But it can be complicated to buy land at auction. There are often a number of precautions that should be taken.

Instructions

Difficulty: Moderate

1. Find a local auction house that auctions land. Get on their mailing list to be notified of new auctions. Land auctions are also found online on sites like eBay or from land auction sites.
2. Investigate the land being auctioned. At auction, it's usually assumed that you have already checked out the land before you came to the auction. If there are problems with it, you will not be given a refund. Walk the land yourself to make sure it isn't swampland, doesn't have drainage problems and is suitable for your needs. You may also want to look into the title of the land and make certain there will be no back taxes due on it. A lawyer can assist you with a title search.
3. Decide on your price range. In the heat of bidding, it can be tempting to keep going and beat out the other bidders. But if you pay more than you wanted to, you aren't getting the good deal you came for.
4. Bid to buy the land. Remember that most auction houses will add a commission percentage onto your bid and most require either the full amount right away or within a few weeks. If you don't have the money together already or have a quick source for it, don't bid.