Real estate auctions provide an alternative means of property acquisition to the traditional real estate agent-buyer/seller dynamic. Many real estate investors will only buy at auction, citing the advantages for both buyers and sellers.
For starters, bidders determine the property selling price. This subsequently determines the true real estate value and is a good reflection of how desirable the area is. Because real estate auctions are open, they offer an accurate gauge on desirability with how much or how little interest is actually shown.
Also, buyers don’t have to worry about hand-me-down expenses. These expenses are added to a buyers final cost and include advertising expenses, commissions, agency fees and plenty more. When buying real estate at auction- with a potential starting bid consisting of nothing more than back taxes- and no commissions or extras to pay, buying real estate at auction is usually the leanest price you could find on any property.
Finally, when buying real estate at auction, you have a much more accurate picture of when the sale will close. That’s because each real estate auction is assigned a date when bidders can come bid on the listed properties while sellers know in advance when their properties will sell.
A determined closing date is especially beneficial to buyers who don’t want to go through the process of putting an offer in on a home, waiting for it to be accepted and possibly dealing with a situation where the seller provides a counter-offer. Rather, buyer knows immediately whether or not their bid was accepted.