4 Must-Know Tips About Real Estate Auctions

Real estate auctions may seem complex, but they are actually very straightforward. However, the auction process does have a lot of little steps and pieces along the way. Here’s some things you may have not realized about real estate auctions:

  1. OreillyTeam-CircleMasterFile5-Nov15Background materials are still available. Just because a property is being sold at auction, it doesn’t mean you won’t have access to property information. You will still be able to find out history of the home or land through items like disclosures, site reports, surveys, and information on zoning and use these resources to decide if you want to bid.
  1. Properties and other auction items can still be previewed. You are still able to visit properties that are up for auction — in the vast majority of auctions, you’re not just blindly bidding! Most auctioneers will hold scheduled and advertised open houses so buyers can visit the property before auction day.
  1. Personal property as well as real estate can be auctioned. Homes, farms, farm land, business and commercial property, and personal property (cars, furniture, and other personal items) can all be sold at an auction, meaning no matter what you’re trying to buy or sell, exploring auctions may be the answer.
  1. You must register. To try to prevent unserious bidders, auctioneers require interested buyers to register before bidding on a property. The process asks for identification, details the terms and conditions of the auction, as well as requires a proof of funds letter from your bank, and a down payment—usually no less than $5,000 and can be as much as 10%—in the form of a cashier’s check.

If your interest in property auctions has been sparked, contact Dan O’Reilly at O’Reilly Auctions to learn more about real estate auctions.