How To Buy A House At Auction
When you buy a house at auction, the auction will most likely be handled by third-party auction companies that handle the auctions on the behalf of the house’s owner. The original owner may be a trust, an heir or the bank, but the proceedings are generally the same. Each bidder is given a number and to buy a house a auction, the bidder must present a bid during the designated bidding period.
- The auction company wants the highest bid possible, and it will add a percentage on to the final price when calculating the final price. Buy a house at auction only after you know what this seller's premium will be. The percentage is often ten or fifteen percent.
- Research the property ahead of time. Once you buy a house at auction, there is no returning it for poor condition. Every auction company allows bidders to look at the house before bidding begins. If you are serious about buying, consider getting a professional home inspector to look at it.
- Find out how to bid to buy a house at auction. Some auctions are silent and are carried out on paper. Some require the bidders to have a numbered paddle. Others are run by holding up a sign, a numbered card or by simply calling out a number. After the auction starts, in no time the procedure begins. Give yourself plenty of time to find out where to go and what to do to buy a house at auction.
- Stay within your budget. In the excitement of an auction, it can be tempting to go beyond what you can comfortably afford to pay or the amount that you can get for the house. However, paying too much can cause you a host of financial problems. Keep your budget in mind at all times.