Real Estate Auctions

by : Jim Hirschman

One of the best ways to find deals in the world of real estate is to attend local auctions. Auctions usually deal in properties in foreclosure, and can sell for a reduced rate. However, it takes patience and timing to find the deals at auctions. Many people think that they can simply do the auctions by their lonesome, but it is a really good idea to take your realtor along with you as they can help identify the best deals and properties to bid on while informing you on properties that you may want to avoid. Finding a realtor who is well acquainted with the auctions process and the locations where these sales are held will increase your chances of finding that gem of a home .

When attending an auction be ready to test your patience. The process is not usually short and involves a number of things before the business of bidding actually starts. One of the most trying of these is the kill process. This involves properties being taken off the auction block shortly before the auction begins. Waiting out the kill announcements can be nerve-racking, especially if the property you are interested in ends up on the kill list. Many real estate investors have attended these auctions only to find that many or all of their desired properties have been killed off before the auction began.

Auctions are a great place to find deals but keep in mind that if you are looking for a really low priced home then you will likely have a lot of bidding competition. Really nice homes or homes that are priced far below their market value are popular items and they are priced low with the expectation that bidding will be fierce. If you spend some time with your realtor before hand you should be able to figure out your plan of action regarding the bidding process. Who knows, you may even be able to make an offer before the home goes onto the auction block.