How to Buy Property at Auction

Buying a home or property at an auction is a great way to get a good deal. Rising home prices make it difficult for some people to afford a home. If you’re tired of renting and want to achieve your dream of homeownership, buying a property at auction is the way to go.

Things You'll Need

• Mortgage loan
• Real estate agent
• Classified ads
• Home inspection
• Down payment

Instructions

1. Get pre-approved for a home loan. Before attending a property auction and making a bid, be sure to secure financing. Once your bid is accepted, you can’t cancel the agreement. Thus, it’s best to get a pre-approval before beginning your property search.

2. Save money for a down payment. Auction houses require winning bidders to submit a down payment, which is approximately 10 percent of the purchase price.

3. Contact a real estate agent that’s familiar with buying a property at auction. To buy a property at auction you’ll need to have a listing of available homes. Contact an experienced real estate agent and express your desire to buy a property at auction.

4. Browse the classified ads. Auction properties are listed in the local newspaper or classified ads on a regular basis. Check the local listings and find the date and time of upcoming property auctions.

5. Visit the property for sale. You’re able to visit the property a few days before the sale. Walk through the property and determine whether it’s a good match for you and your family. Take into account the property size, features and needed improvements.

6. Schedule a home inspection. Before bidding on a property for sale at auction, have the property professionally inspected.

7. Determine your maximum bid amount. If several people bid on one property, the price can quickly increase. Establish a bid limit and stick with your decision.