Buying Real Estate at Auction is easy and fun…. Advantages of Buying at Auction:
Buyers set their own Purchase Price You pay only as much as you want. No pressure, you just bid or not, it’s up to you
Purchase your property at Fair Market Value It’s always comforting to have instant confirmation of value by contending bidders. You know someone else wanted the property just one bid behind yours
Eliminate lengthy Negotiations and Reduce Time to Purchase No back and forth, when the auctioneer is finished, so is the sale. You bid, you buy, you close!
Registering and Buying Real Estate at Auction: When you arrive at the auction site, register for your bidder number and read the terms and conditions printed on your registration and on brochures or handouts. Ask questions if you’re unsure of a policy, we are there to help. Inspect the property, as most are auctioned on an “as is, where is” basis. This means it is not guaranteed, however you may freely do any inspection you want before the auction starts. The auction property will be made available for preview and inspections prior to the date of the auction.
Bidding: In order to bid at an auction, you need to make contact with the auctioneer or the ring person. A ringperson is someone who takes bids from the audience and then passes those on to the auctioneer. Some bidders prefer this method of bidding, in that they can maintain anonymity throughout the bidding process. To bid, hold up your card, your hand or shout “yes.” The auctioneer or your ringperson will make eye contact with you, take your bid and immediately turn and seek another bid. You can remove yourself from the process at any time by shaking your head “no” or saying “no” if the auctioneer or ringperson turns your way. Should an auctioneer or ringperson misinterpret any of your signals, simply report the mistake right away. It’s so easy and fun!
Auction Myths: Myth #1) Property sells at ridiculously low prices Myth #2) Auctions are only for foreclosure or distressed properties. Myth #3) You have to be an “experienced” auction buyer. Not really, contact your realtor for assistance.