Real Estate Auctions
Whatâ€™s Your Best Bidding Strategy?
Real Estate Auctions •Real estate auctions can be challenging, but can also be a great way to get your largest asset at an attractive price •How to handle process at real estate auctions: –Do your homework – know details how auction process works –Understand real estate values and other financial aspects –Be patient – it takes time to become an educated successful bidder. You need to also wait for the right deal to come along
Real Estate Auctions •You’ll be competing with other bidders in most real estate auctions. Bidders have same objective as you whether you are bidding on family home, investment property or raw land •At real estate auctions, it comes down to whose upper limit price is the highest. You need to stick to your limit even if property is worth more. •Bidding takes a lot of discipline
Real Estate Auctions Tips for a Strong Bidding Strategy •Have enough cash readily available – most require registration and upfront payment. You’ll also need to pay commissions in addition to final bid price •Understand the type or real estate auction held – two basic types: reserve and absolute auction. Reserve auction, seller can reject highest bid
Real Estate Auctions Tips for a Strong Bidding Strategy •Understand the type or real estate auction held – Absolute auction, seller sells the property to highest bidder regardless of what amount is •Research specific properties that interest you – collect information: what is owed on the property, liens attached, taxes owed, etc. Research the neighborhood: rate of foreclosures, public schools
Real Estate Auctions Tips for a Strong Bidding Strategy â€˘Inspect the property â€“ reputable real estate auctions sets aside inspection times for each property. Take advantage of thorough inspection, bring along contractor, real estate agent, etc.
Real Estate Auctions •Real estate auctions present opportunities to get below-market prices •But stay focused on developing a strong bidding strategy •Remember prepare meticulously, be patient and stay disciplined
Real Estate Auctions About the Author Deb Weidenhamer is President of Auctions Systems Auctioneers & Appraisers, Inc., based in Phoenix, Arizona. They specialize in auctions and professional appraisals. Visit us at http://www.auctionANDappraise.com or call 800-801-8880 for more information about Real Estate Auctions.