How to buy at Real
Estate Auction
Some phrases commonly heard by auctioneers in regards to
real-estate auction buying are "Is this really what
I want to do?" "I've never done this before"
and "Are we going to save money or lose money by purchasing
through a real-estate auction?". Fact is, real-estate
auctions are a great way to purchase real-estate and can
usually benefit both the buyer and the seller (everyone
loves a win/win situation right?). Whether you are looking
for Northern Wisconsin waterfront for sale or looking at
buying beachfront property in Door County, here are some
suggestions to the potential real-estate auction buyer.
Make sure the property is up to par and well worth what
you are willing to bid on it. Properties are typically available
for viewing several times leading up to the real-estate
auction. While viewing the property, take note of the specifics
and get familiar with the property. Ask questions when appropriate,
but use your own judgement if the person showing you the
property knows very little of it (this is common when estates
are being auctioned by an executor).
Be prepared before attending the real-estate auction. First,
as stated above, you'll need to inspect the property. It
is important to understand both the condition of the land
and the buildings on it. Second, gain as much information
as possible. You may even want to get a good understanding
of auction law & real estate law before beginning. Third,
get pre-approved to purchase the property. Fourth, know
your financial/time limitations. In other words, know how
much you can comfortably spend, and how much time you'll
be able to spend in refurbishing/improving the property.
Finally, make sure that you understand and accept the auction
company's terms & conditions of the sale.
Another common question regarding real estate auctions
is "How do real estate auctions work ?" On the
day of the real-estate auction, you must register prior
to the auction, and a deposit must be shown to the registrar.
Make a cashier's check payable to yourself, and endorse
the check only if you are the highest bidder and plan to
make the purchase. If purchasing, the cashier's check is
non-refundable and will not be returned if you do not close
on the property. You must also complete and execute a Purchase
and Sale Agreement. The property can be considered "sold
as is" and has no guarantees or warranties of any kind.
The balance of the property will be due at closing which
is typically 30-45 days from the auction.
By using this information, you should be well on your way
to a successful Wisconsin real-estate auction purchase.
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