Whether you are in the market for a primary residence or a money-making investment property, real estate auctions can save you a lot of money. Homes and investment properties are auctioned on a regular basis and for a number of reasons. Some real estate auctions are the result of foreclosures, while others are planned to settle estates or sell a house quickly.
No matter what the reason for the auction, it is important to do your homework and not get caught up in the heat of the moment. When used properly, a real estate auction can yield a fantastic bargain and result in the deal of a lifetime. When used foolishly, however, a real estate auction could cause you to overpay and end up with more debt than you can afford.
If you want to win at the real estate auction game and get a real bargain, you will first need to know where you stand financially. Before you attend any auction, you will want to contact the estate auction company and get a list of the complete bidding terms and conditions. Some auction companies will require you to put only a small percentage down when you win the auction, while others will require a significant down payment. Before you place a single bid, you should first contact your bank and make sure you can access your cash quickly.
A few days before the auction, you will want to visit the bank and get a cashier’s check you can use if you win the property. Having the money on hand will make the transaction easier and help you avoid any unpleasant surprises on auction day.
Having the money on hand is important, but it is only part of winning the real estate auction game. The other part is knowing how much to bid and assessing the true value of the property. Do not assume that all real estate auctions yield bargains. It is easy for bidders to get caught up in the heat of the moment and spend more than they should.
Also keep in mind that properties offered at auction may have hidden flaws that could lead to costly repairs. You may not have the same rights as you would if you were buying from a real estate agent, so be sure to inspect the property as much as you can before you start bidding. If a full inspection is not possible prior to the auction, you may need to lower your maximum bid accordingly.
Whether you are looking in the Melbourne area or elsewhere in the country, it is important to do your homework and research the property carefully. Check out the neighborhood carefully and make sure it is somewhere you would want to live – or collect the monthly rent. An auction property is no bargain if the home is located in an undesirable area or selling prices are on the decline.
Whenever you attend a real estate auction or contact an estate auction company, always keep the ultimate goal in mind. The object of any real estate auction – at least from the buyer’s perspective – is to score a bargain. That means researching home values before the auction and not getting caught up in a costly bidding war.