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6 Tips For Buying Land At Auction

Thursday, September 22nd, 2016
property auctions

Auctions offer a great opportunity for you to buy a piece of land for home-building, recreational, or commercial use. However, auctions can be unpredictable, so it is important to prepare yourself before you place any bids. Understanding the following six tips will help to ensure the process of buying land at auction goes as smoothly as possible.

Find a real estate agent

If you have never purchased land through an auction, check with a local real estate agent to make sure you understand the process. If you are lucky and place the winning bid, you will need an attorney or real estate agent to prepare the closing documents. These individuals will also help to transfer the ownership of the property once the sale is finalized.

Locate land that is up for auction

Land that is being auctioned off will be listed by your county treasurer or tax collection website. These government auctions are normally held in the county where the property is located. Your local newspaper may also have a section listing upcoming auctions. There are private auction houses in your area that you can contact to learn about other upcoming land auctions as well.

Get comfortable with the auction process

Make sure you are comfortable with the auction process and the auctioneer. Attend a few auctions as an observer to see how the bidding process works. You should also check into financing options and make sure you have acceptable financing in place before ever placing a bid.

Check out the land that is available

Brochures are usually available prior to the auction that contain information about land being sold. The brochure will include all the information you need to check on the property personally. Schedule a tour of the property you are interested in with the auction house that is selling the land. View the location and condition of the land to make sure it is something you wish to own.

Compare other properties

To make sure you know the value of the land being sold, you should compare it to other land nearby. Look at the appraised value of neighboring areas to make sure you do not bid more than the land is worth. This is a very important piece of information to know before you place a bid so you can decide what your limit will be.

Secure your financing before the land auction

When you know how much the land is worth, you can then work on financing for the auction. Although there are some auction houses that will allow you to finance through them, most require payment in full as soon as an auction is won. You will need to get pre-approval for a mortgage prior to the sale in case your bid wins. Should you not be able to secure financing, you will need to have the cash required to complete the purchase when you win the auction.

If you would like to learn more about buying land at auction, contact the experts at High Plains Auctioneers today. You can call us at (806) 244-6776 or Contact Us by email for more information about buying items at auction. Don’t forget to check out our Upcoming Auctions to see what we have available!