Buying at auction can have many advantages but it is helpful if you have a guide. There are a lot of things to consider if you want to do it right. First of all, what are some of the advantages of buying a property at an auction? There are many and we will only name a few of the most important.
Properties are offered at a competitive price and if you do purchase a property you know you have paid fair market value, no more. If more than one person is interested in a particular property the auction demonstrates free and fair competition, enabling the bidder to buy the property at a price that is competitively achieved against other known bidders, either in the room or live online.
If you are the successful buyer of a property you know the seller cannot change his or her mind on the price and the property is yours upon completion of the auction.
When buying at auction the seller guarantees a clear title upon closing with no tax liens or mechanics liens, assuring you of no surprises down the road.
Most auctions will offer a catalogue with the description of the properties, how to view each property and the general conditions of the sale. Ample opportunity is given to inspect the property and you can seek professional advice from contractors and appraisers to help you decide on your offering price.
As a buyer at auction the sales process is accelerated for both buyer and seller. What this means to you as the buyer is you can close and take possession in as little as 30 days avoiding lengthy negotiations of price and terms. Most traditional real estate transactions can take as much as 90-120 days before you can move in. The purchase is based on your timetable, not the seller or the bank.
These are only some of the advantages of buying at auction which has become an increasingly popular means of buying property in recent years. The real estate market has certainly had its ups and downs over the past decade but one constant since properties have been sold going back to Roman times is the auction. It is a tried and true method to convey property that will be around for a long time to come, so look into it wherever you live and maybe you will find that single family house, condo, townhome or investment property you have always been looking for. It is fun, it’s exciting and the end result is everyone comes out a winner.