Learn A Few Tips For Buying A Home At A Real Estate Auction
Posted on: 12 January 2016
If you want to get a great deal on a home, consider shopping for one at a real estate auction. Many people do not know what happens in a real estate auction and do not realize that they are often open to the public, not just private companies or investors. The following guide walks you through the pertinent information you need to know about buying a home at a real estate auction.
Get Pre-Approved
Go to a lender and get approval for a home loan before the auction takes place. When you bid at the auction, you have to be able to back up your bid right away. You do not get to win an auction and then go and try to get approval for the loan from a lender. You need to be able to show the auctioneer your loan approval on the spot in order to get the house that you want.
Do Research Before the Auction
You need to take the time to do some research about the home before you go to the auction. Many homes are listed for sale before they go up for auction so you can often scour the internet to find the information you need to know about the home. Most homes are closed before the auction so you cannot take the time to look through them to see what kind of condition they are in. By doing research, you can know what you are getting into before you even place a bid. Look for details about the school district, crime rate, and condition of the home when doing your research.
Contact a Home Remodeler
If you find pictures or detailed information about the home online and discover that there are aspects that you will want to change, contact a home remodeler to find out what the changes will cost you. This will allow you to know how much is a reasonable amount to spend on the home so that you do not end up spending more than the home is worth.
Be Aggressive at the Auction
When you go to the auction, do not be timid. You need to be aggressive with your bidding. Make sure that the auctioneer can see that you are bidding and hear you if you want to jump the bid by a few thousand dollars.
When you are bidding at the auction, get a feel for the crowd. There will be other interested buyers, but you can often weed out who is serious and who is there to bid only if the price doesn't go too high. You do not want to jump the bid by too much money, because then you could pay far more for it than you would have if you just got a feel for how aggressive the other bidders are going to be. Stick to jumping the bid by $1000 to $2000 at a time to ensure you do not overpay for your home. For more tips about bidding on potential homes, contact an auction business, such as Bob Parks Auction Company LLC.
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