Auction Purchase

[Albert Zheng]

Hi everyone. I'm a newbie regarding how auctions truly operate. I plan on attending one just to observe and see how the process unfolds. I was wondering if anyone could provide some tips and advice on how to purchase a property at an auction. FYI, I'm currently in California right now in the Bay Area.

All these questions have come to my mind:

What type of research should the buyer do when evaluating an auction property?

If you can't enter or inspect the home, what are other available information can you utilize to make a proper decision whether to make the purchase?

If you don't have the all cash on hand to purchase, what strategies do people use to find lenders for these type of purchases? 

If you're able to finance your bid and win, how does the deed get transferred to you and what are the next steps in finalizing the ownership of the property? 

Feel free to educate me if I'm not asking the appropriate questions.

[Steve Babiak]

It never ceases to amaze me that newbies to auction are under the impression that they will learn a bunch just by attending. Sitting there is the easy part - the stuff you need to learn you probably won't learn just by sitting there. 

Do go through the reading materials that @Chad U. so kindly pointed out, pick a few properties on the auction list and perform some initial due diligence on those, and then just go to the auction to sit there - but observe closely what happens with your chosen properties. Did others bid higher or lower than you expected? Did nobody bid? Try to understand why. You have to see how you'll fare given the competition there.