There are plenty of reasons why buying a house at auction is a good idea, but we understand many people may be unfamiliar with the process. Any home purchase is a huge investment, and the proper research should always be done before finalizing a sale. From tax concerns to uncovering potential hidden faults in a property, we’re here to provide you with some of the basic things you should know about buying an auction home.
One of the first things you need to know is understand the process of buying a home at an auction. You’re likely not going to want to make a purchase at the first auction you attend, which is OK. Take the time to observe other buyers and get a feel for what the auction is like. If you’re seriously considering buying a home, you may want to speak with either the auctioneer or your attorney to find out the specific bidding requirements.
Besides the auction process itself, you’re going to want to do research on any potential homes you’re interested in. There are many reasons why a home can be at auction, most of which won’t affect a new buyer. It could have been a foreclosure, or it might have been seized for unpaid taxes. It could also be an estate sale or liquidation of excess inventory from the previous owner. Do some research and make sure that you’re aware of any outstanding liens or tax levies that you may be liable for when winning the bid on an auction property.
Whatever the circumstances are of the specific home, you’re generally not allowed to go inside an auction property. You can, however, visit the neighborhood that it’s located in and take a look at it from the outside. This will help you get a preliminary idea of the property’s condition and give you a chance to look for any noticeable defects or concerns.
Finally, you’re going to want to decide how much you are willing to bid on a specific property. What you plan to do with it will likely affect this number. For example, you may be willing to pay more upfront for a pristine home that you want to live in, but you’re likely to be more conservative with the home that is in obvious need of repair work and updating that you’re going to spend further money fixing and possibly reselling.
With these tips in mind, you can more confidently shop for homes at an auction. Of course, there is so much more to learn, so get out there and attend your first auction to get started. Check our site regularly for the latest auction listings and find a sale happening near you!