How to Bid at Real Estate Auctions

How to bid at real estate auctions?

On the designated time and date of auction, the registration period usually begins one to two hours before the auction time. All the bid applications are opened at the auction venue in front of all the bidders.

At auction, the registered bidder is the candidate who is responsible for executing the contract for purchase of the property. The auction staff includes the auctioneer and the bid assistants. The auctioneer is the person making the announcements and calling the bids. The bid assistants will help the participants in understanding the auction if they are facing any problem.

At the end of the announcement and question period, the auctioneer starts bidding for the property and registered participants can place a bid with an auction bidder card given to them during the registration process. Bids are generally made either orally or by raising a hand.

How to Bid at Real Estate Auctions

Auction starts with a minimum price by which the bid will rise. The auctioneer calls the number already bid and the next number asked to be bid. He will allow participant bidders to continuously bid up the price of the property. When the auctioneer firmly decide that there is no further increase offered for the property price, the auctioneer will shout “sold” and the auction ends. He will then declare the highest bidder. At this point, the auctioneer will close the auction and award the property to the winning bidder.

The bidding is fast so if you wish to bid, pay proper attention and quickly raise your hand or shout your bid loudly. Be sure to be on time because the process goes very quickly and within few minutes the auction could be over.

Winning bidders will have to sign a contract immediately and pay 5%-10% deposit to the agency in 24 hours of period and the remaining balance within 30-45 days.

How to Bid at Real Estate Auctions

During this period of one or two months, the previous owner may file an objection to the sale of his property and pay the amount owed to retain his rights on the property. So it is better not to do any work on the property until you receive the certificate of title.

The agency issues a certificate of sale only after the total amount is paid by the winning bidder. If the buyer fails to submit the complete amount during this time, the deposit is usually forfeit.

When the buyer pays the entire remaining amount he is provided with the certificate of title and the keys of the property. The winning bidder then officially becomes the owner of the house.

Real estate auctions provide you with the opportunity to buy a property you might not otherwise be able to afford. Auctions offers properties at a price that can be far below the market value. Apart from these benefits, auctions also has many  traps and pitfalls that should be taken care of.

How to Bid at Real Estate Auctions

If a property is put up on auction that means the homeowner was facing financial troubles, so the property may have maintenance problems. Also, there may be claims against the property. Be sure to check for any liens. Moreover, the properties on auction do not allow for a inspection tours prior to the auction. In some cases, the previous owner or a squatter might have occupied the property, that means it will be your headache to expell them out if you own the property later on.

So, if you are interested in buying a property at auction there is a lot to learn before you plan to bid on a property. It is extremely important to know about all the details of the property you are interested in bidding on.