How to Buy a House at Auction

You can get some great trading properties on auctions. Here’s your guide to buying a house at auction, if you are a first time buyer. Home buying is an important decision in a person’s life. Of course, you invest a lot of time and effort in researching before buying. But sometimes, a lot of time is wasted throughout the procedure and you can lose on a good opportunity. Besides, many times there are delays on that part of the seller, and at this time you can find yourself without a house to live. In some cases, a seller may choose to sell his house to a higher bid, while in other cases he only draws his offer. Such things can cause a lot of frustration to a potential house. The best way to solve these problems is to buy a property at auction. But…you might need a professional help like what’s provided by Hudson & Marshall-Home Auctions.

Find the properties

You can find a number of properties on auction. Some of these properties are taken over by mortgage lenders, while others are under the hammer for quick sales of their sellers. Acquired properties may not be in good condition as mortgage lenders do not waste time and money in sprucing up these houses. Some of them are in downright dilapidated conditions. An auction also has some unique features that only appeal to niche buyers. In any case, you will see a wide range of home features. Below are some ways to buy a house at auction.

Get information about the auction

Auctions are often advertised in real estate newspapers and magazines. So keep an eye on auction related annotations and hints. In addition, you can also ask at real estate agencies to see if there are any auctions set up.

Ask for a catalog

The next step is to approach the auctioneer and ask for a catalog. Read it carefully and see if there is something that meets your requirements. Study the property carefully to ensure that it is exactly what you are looking for. Also ask the market price of a similar property so that you can put an approximate number for yourself that you should not cross during bidding. Another thing to consider when buying a house in the auction is the history of the seller.

Visit property

If something captures your interest in a directory, you should go visit it personally. Since property is buying a big decision, you can’t afford to see it yourself. If the property seems to be in need of major structural changes, it is best to take an architect, a general contractor with you. This should give you an estimate of costs that you are likely to incur after purchasing the property.

Ensuring economy

If you win a bid, you will be required to pay 10% of the bid on the day of the auction, while the rest, within 28 days of the auction. Therefore, it’s best to keep your finances ready in case you win a bid. If you buy a house with cash is not for you, then you need to look for financing options. A period of 28 days is not enough to cover mortgage lenders, get approvals and eventually make the payment and you might need extra time. We hope this article can help you in “struggling” on an auction.