Live Auctions Help

[Lee Behr]

Hello Everyone, 

I want to begin bidding on live auctions but I am completely new to this. I usually get my deals off of the MLS because I am a real estate agent, but the deals are drying up fast. How do I do my due diligence with checking on liens in Maryland? Also, I am confused on how the financing and settlement process works. Anyone experienced in getting their deals through auctions that could give me some good advice/tips ? Thank You !

[Brecht Palombo]

I'm an auctioneer not presently practicing but have sold a lot of property (100s) for a lot of banks at a lot of auctions. Here are some mistakes/tips

1. Not enough due diligence. The contract is the contract and the money is hard, you're not getting your deposit back. Be aggressive about learning everything you can about the property before you start bidding. Talk to neighbors, go to the town hall and pull the jacket, do whatever you need to. Find out what you absolute max is and then put a little margin on that just in case
2. Be 100% on your source of funds - no time to figure it out after. My bidders close in 30-45 days, on the way outside 60. Some states you can have this flexibility others not. Whatever the timeline is make sure you are 100% on that
3. Decide on your top number and don't get excited and go over it. It sounds crazy but when I'm up there calling numbers and my pit man is in your face and your ear and the other guy is going for it you need to remember what you came to pay and stay with that.
4. Don't try to game it. Auction theory works. It just does and its because of human nature. If you try to play a game other than simply bidding the next increment until you reach your max, you'll probably regret it. 
5. Talk to your auctioneer. We get a fee if it sells to the bank we get a commission if it sells to you. A lot of places are foreclosure factories and they won't talk to you and won't do PIPs. If they do and they're the kind of place that actually sells to 3rd parties then reach out and make sure they know who you are. Ask question. This won't always work and the auctioneer always works for the seller to get the best price but that doesn't change the fact that at a lot of auctions when you show up and some of the players know each other there's already an idea about how its going to go. Best if you can be in the know.

Hope that helps.