Buying at Auction
Advantages of buying at auction:
- Purchase property at fair market value
It's always good to know that someone else wanted the property just one bid behind yours.
- Buyers set their own purchase price
You pay only a much as you want. No heated or arm twisting tactics you just bid or not, it's up to you.
- Eliminate negotiation periods, it's easy
No back and forth, when the auctioneer is through, so is the sale. Without lengthy, time consuming and nerve filled negotiations.
- Reduce time to purchase property, it's fast
You don't have to look forever. You bid, you buy, you close.
- The buyer knows the seller is MOTIVATED to sell!
Every Buyer wants a motivated seller. With an auction, there is absolutely no question.
Myths About Auctions:
- Myth #1) Auctions are only for properties in foreclosure or when someone has died.
- Myth #2) You have to be an "experienced" auction buyer to buy at an auction.
- Myth #3) Property sells at ridiculously low prices
Registering and buying real estate at auction:
When you arrive to an auction site, register for a bidder number and read the rules printed on or displayed on posters, brochures or handouts. Again, ask questions if you don't understand a policy. Inspect the property you're interested in, as most are sold at auction, 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. Typically the property will be open for previews 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 ringperson. A ringperson is someone who takes bids from the audience and then passes those on to the auctioneer. To bid, hold up your bid card, your hand or shout "yes." The auctioneer or 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.