Things to Know when Attending Real Estate Auctions
A real estate auction is a public sale to any person bidding the highest price, based on terms and conditions previously announced. Before attending a real estate auction, individuals can register online or on the actual day of the auction. Although some real estate auctions have specific requirements for registration, it’s best to refer to the terms and conditions for the specific auction beforehand.
Most properties being sold at a real estate auction will be open for inspection with specific dates and times. However, some properties may be shown by appointment only. In these situations, it is appropriate to contact the individual broker as they are available to answer property-specific questions and open house viewing questions. Although real estate brokers and agents are not required in order for any person to place a bid, they are welcome to represent an individual at an auction.
Although a down payment is not required at any real estate auction, individuals are required to place earnest money on the contract at the actual auction in the form of certified funds. The earnest money deposit collected at a real estate auction should be the only deposit required prior to closing. The amount of money required for the earnest money deposit should be detailed in the terms and conditions for any specific home auction. If a buyer does not close for any reason on or before the closing date, the initial deposit may be forfeited. Individuals may buy more than one property at the auction but will need to bring and present a separate cashier’s check for each property he/she intends to purchase.
During the real estate auction, some properties will be sold “reserve” or “absolute.” An auction where the property is being sold with a “reserve” means that the property is being sold subject to the seller’s approval. When a property is being sold “absolute” it will be sold to the highest bidder regardless of price. Also, keep in mind there are no set minimum bids. Since the audience begins the bidding, once the real estate auction is in session the final sale price for each property is subject to approval by seller. Once someone becomes the successful high bidder, they will then complete the purchase and sale agreement for the property. Agreement examples are available the day of the auction.
Hudosn and Marshall is a leading company that holds Real Estate Auctions and foreclosed home auctions. For more informaiton on their current inventory be sure to visit their website.
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