How to Participate in a Real Estate Auction
Real estate can be an extremely difficult to become involved in, especially if you are doing everything by yourself. Dealing with a number of real estate agents, managing your finances, advertising or searching for properties can be intensely stressful. Real estate auctions can be a much easier way to buy and sell properties. Anyone can participate in a real estate auction. You only need to know the requirements.
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Instructions
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Buyers
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1
Find a real estate auction company in your area that you assess to be a suitable, reputable company, including checking out websites and blogs.
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2
Go to the company's website or physical location and register as a buyer with the company. All real estate auction companies with require you to register. Provide the requested information, which will include your personal data and company information, if applicable.
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3
Provide the auction company with a certified or cashier's check as a deposit..Almost all real estate auction companies will require this and the check will be returned to you if you do not win as the highest bidder on any property. If you are granted a property, the check will be applied to a sale.
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4
Arrive at the auction at least an hour early to orient yourself and examine what properties are being auctioned. Be prepared to bid only on those items that you are absolutely prepared to purchase.
Seller
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5
Find a real estate agent to assist you with your property. If you are a real estate agent, this step is not necessary.
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6
Have your property inspected by a licensed home inspector and obtain a certified letter that the proper inspections have been conducted.
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7
Have your property appraised to determine a reserve price. This reserve price is the minimum amount that you will accept from a buyer.
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8
Complete Steps 1 through 3 of the instructions for buyers, providing any extra information required of sellers.
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9
Arrive at the auction at least an hour early to ensure that your property is presented exactly as you want it to be.
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Tips & Warnings
Real estate auctions can move very quickly, so arriving ahead of time is key. You want more than enough time to look at properties that you are certain you are interested in buying. Focus on and follow only these properties and be ready to jump in quickly with your bids.
Before participating in the auction, research all warranties and protections that are offered by the auction company, especially if the company is online. If you find a property that you really like, contact the seller and speak with them directly to obtain additional information about the property.
If you are selling your home, you can either go through an auction company or set up your own auction. If you take the latter route, the only extra work yo will need to do is to hire an auctioneer who will conduct the actual auction.
In determining a reserve price, the real estate agent will weigh the appraisal value of your property against that of other homes in your neighborhood. You must determine what the net gain would be from the sale of your property after all fees, taxes and other dues are paid.
A real estate auction company should never request your Social Security number online. Beware of companies that require this information unless you are face to face with a person.
