Auction Property Tips

[Antwaun Sumpter]

There are two different ways a house can reach an auction: either the home has gone into the foreclosure process, or the owner did not pay property taxes. The starting bid on the home can be the remaining balance on the mortgage, or lower.

Once a home reaches the courthouse steps, buyers must be ready to pull the trigger fast. Buying a house at the auction can be a high risk, but the reward can be extremely high as well. You will have to do a lot of research about the current market and have a solid understanding of just how much you’re willing to spend.

Keep in mind that when buying a property at an auction, you will likely be required to buy the home with cash. Each auction company and county government requires a certain method of payment. Familiarize yourself with the process of your local auction ahead of time.

One of the biggest tips we can provide is to make sure you have someone with you at all times who understands the local auction process – especially if you are a novice buyer. This can help you to protect yourself from making a bad decision. Whether the person is your agent or your attorney, have someone there to represent you in the transaction. Having an expert’s help will allow you to reap the benefits and avoid the risks.