Focus of this blog is on voluntary/retail real estate auctions, not the courthouse steps/foreclosure auctions.
If you want to bid on real estate that's being sold at auction, follow these simple guidelines:
(1) obtain all of the terms & conditions, property information. Most professional real estate auction companies provide a Bid Package or Property Information Package that contains all pertinent information. Read it thoroughly.
(2) show up for the inspection/preview period. If you want, this is the time to schedule your own inspector, appraiser, friends, relatives etc to visit the property and weigh in with their opinion of the value.
(3) get pre-qualified for adequate financing. After an auction is too late to find out whether or not you can afford the property.
(4) don't tell the auction company how much you're pre-qualified for.
(5) remember that the auction company represents the seller's interest only; not yours.
(6) if you have an agent representing you, make sure the agent follows instructions for how to get compensated for representing you. Usually auction companies have agent registration forms that must be sent in 24-72 hours in advance of the auction.
(7) establish a value that you're willing to pay for the property in advance. Write it down, give it to your agent, anyone who'll be attending with you. Auctions are emotional events and buyers sometimes bid more than they expected.
(8) arrive at the auction with ample time and with necessary documents. Most auctions require certified funds of a specified amount in order to register to bid.
(9) if you have any questions about the property or the auction process, ask the auction company.
(10) buyers premium - most auctions have a buyers premium; which is an added % to the high bid to total the sales contract. Know what the % is.
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