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.