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Tips On Bidding At A Real Estate Auction

Wednesday, August 12th, 2015

There’s something about being at a live auction that is exciting and overwhelming all at the same time. With bids flying by faster than you can count and the auctioneer’s fast drawl announcing those fateful words, “Going once, going twice!” bidding among experts can be more than intimidating. If you’re just beginning a foray into the fast paced world of auctions, there are a few things to keep in mind when bidding. Make sure you begin by preparing for the real estate auction and researching the property that will be available. Most importantly, know your limits. You don’t want to end up paying more than you can afford and there will always be other auctions.

Prepare for the real estate auction

Preparation is key. If you are new to the scene, there are a few things you need to do to get ready for a real estate auction.

First, register with the auction house to receive your bidding number. For real estate auctions, you may have to put down a cash deposit. Determine whether or not you need to bring a cashier’s check and how much you should make it out for.

Then, browse the real estate auction catalog online and figure out which properties interest you. If possible, participate in an absolute auction as opposed to a reserve auction. In a reserve auction, you can be the highest bidder and still lose due to the reserve price. It’s easier to win and less frustrating to participate in an absolute auction, especially if you are not familiar with the process.

Finally, if you know you are going to need help financing your new property, get pre-approved through your bank before bidding day. Then you will be ready to go when it’s time to pay up.

Research the property

To make sure you are bidding on a property that won’t end up costing you more in the long run, do some research. Find out if the property has any liens against it or tax burdens. Read about the properties on the real estate auction website to get the whole picture before bidding. Determine what the value of the property is so you will be able to estimate what your bid should be. You don’t want to end up paying more than the property is worth.

Know your limits

Let’s face it; these events are exciting and it’s easy to get swept up in the bidding. However, know your budget before you begin bidding and stick to it no matter what. Don’t get caught up in a bidding war simply to try to outbid someone else. You will end up paying much more than you can afford. Once you have hit your budget, simply bow out of the real estate auction. There will be others in the future.

When you are bidding, make yourself known to the auctioneer. Though auctioneers are trained for physical cues, it doesn’t hurt to plainly raise your paddle so your bid is known each time. Once you are done bidding, set your paddle down.

For more information

Ready to jump into the auction action? Contact us at High Plains Auctioneers if you are interested in bidding at a real estate auction or if you are considering listing real estate for your own. Call us at (806) 244-6776 for more information. Check our website to see upcoming auctions. Drop us an email for a convenient and quick reply to your questions or comments. Happy bidding!