Helping Your Buyer’s Purchase at Real Estate Auctions
I’m sure you see the listings in the MLS for properties for sale at auction and you probably shy away from them. I know I used to.
Now, I bring a lot of buyers to the auction, especially cash paying investors and my investors using hard money to purchase property.
There is a lot of inventory that is being sold by auction.
Some things to look out for:
Ask the auction company if pre-auction offers are permitted.
Ask the auction company if they pay a co-op and what it is
What do you have to do to register your client? Often times auction companies have their own streamline contract process.
- Where is the auction held?
Does the buyer take possession at ratification or settlement?
Can the buyer inspect the property prior to making an offer?
Does the buyer have to use a specified title company for settlement?
What is the minimum deposit and how is it paid?
Can the buyer use a mortgage to pay for the property?
How long does my buyer have to settle?
There are several real estate auction companies in the Greater Baltimore area and they all have different requirements for buyers to bid, call and ask them and go to the auctions, it can be a great place to acquire more buyer clients.