If you're looking to buy a home, a real estate auction is one of the ways that you can do it. But is it the best way for you? By understanding a few key things about them, you can make the decision about if you want to go that direction when it comes to purchasing a home.
You Should Visit The House
Ask your real estate agent about visiting the house before the auction. This is not only allowed but recommended. You'll have a clear idea about what the home is like prior to the auction and what sort of repairs will be necessary. In addition to missing appliances, you'll learn about things such as if there is any utility work that must be done to get the home up to code. Now is the time to have a home inspection done if you are sure you want the home, even though there is a risk of you not getting the home.
A House Can Be Sold Prior To The Auction
You may not be aware that a house can be sold prior to the auction taking place. This is both a good and bad thing depending on how you look at it. On the bad side, it means you have the potential to waste money by having a home inspected prior to an auction, only for it to be purchased before the real estate auction even happens. This happens because somebody makes a great offer on the house and it gets sold.
This also means that you can do the same thing. You do not need to wait for an auction to make a bid. You can always submit an offer to the owner and see if they accept it. If not, you continue on to the auction as planned.
Since real estate auctions typically happen because of foreclosure, keep in mind that the owner could also make the necessary payments before the auction to prevent the house from being sold.
Know The Home's Value
Work with your agent to determine the home's value. You want to know what the home is worth in the current condition it is in and what it could potentially be worth when you fix it up. These numbers will help guide you to determine how much you should bid on a home and help ensure you don't overpay when you are bidding against other people.
For more info about real estate auctions, be sure to ask an agent from an agency like Chris Calhoon Real Estate.