Tips For Investors Buying Property At A Real Estate Auction
For investors looking to purchase properties at an affordable price, real estate auctions provide a great opportunity to find a deal. First-time bidders may find the auction process a bit intimidating, but conducting some research ahead of time can provide substantial peace of mind on the day of the sale. Abide by the following tips to ensure a successful real estate auction experience.
Do Your Due Diligence
Before bidding on a piece of real estate, it’s important to have a decent grasp of the details surrounding the property. “Due diligence,” in this case, refers to the buyer’s responsibility to thoroughly vet the property before purchasing it.
This can mean familiarizing yourself with comparable properties, researching the history of the home, and hiring professional inspectors, if allowed. While it’s impossible to know every single detail about a property before purchasing it, buyer’s due diligence goes a long way toward a successful bid.
Know Your Number
Before showing up on auction day, be clear about your highest and best offer. Auctions are fast-paced and exciting, which can cause some bidders to overreact and spend beyond their means. Having a firm budget window helps to avoid this scenario and puts more confidence behind your bids.
For foreclosure auctions, you’ll need to provide the entire lump sum following your winning bid. REO auctions, on the other hand, only require an earnest money deposit from the winning bidder. Work out any financing ahead of time and come to the action prepared to buy.
Show Up Early
Showing up to a live, in-person auction early allows you to take another look at the property and clarify any questions you may have with the auction team. If you’re bidding on an online auction, go through the property details page before the auction begins to look out for new or overlooked information. Showing up early also helps you settle in, relax, and organize for the bidding process.
Whether you’re bidding in-person or online, show up prepared and you’ll be well-equipped for a successful real estate auction experience.
Nyra Smith leads the Foreclosure Marketing team at ServiceLink Auction powered by Hudson & Marshall, the nation's longest-standing real estate auction company. Her dedication to growing bottom-line revenue and ability to carve into niche markets have made her an invaluable resource in the industry. Nyra’s innovative spirit and strong marketing instincts are showcased in her compelling communication campaigns and marketing programs centered around the acceleration of business development.