Real Estate Auctions
Real estate auctions are a means used to convey real property from seller to buyer. Potential buyers assemble, register and then participate in competitive bidding mediated by a licensed auctioneer. With recent trends toward more innovative strategies regarding the disposition of real estate, there has been a re-emergence of the auction method and with it a wider acceptance of the process.
Real Estate Disposition, LLC (REO Auctioneer)
JJ Manning Auctioneers(REO Auctioneer)
Realty Bid.Com(REO Auctioneer)
Hudson & Marshall(REO Auctioneer)
Residential/Commercial
Real property auctions can be divided into two categories: commercial and residential. Within those categories are parameters and conditions that make each sale unique. Commercial properties can be sold off as proprietors retire or to settle estates and divide partnerships. They also can be placed on the auction block as resolution to a foreclosure proceeding.
Buying At the Auction
While savvy buyers certainly can make a profit buying at auction, it is a misconception to believe that anyone can walk away from a real estate auction with a house for a dollar. If it seems too good to be true it often is. Research is the only tool that will yield real auction profit. Know the value of the property, but also find out about any liens, unpaid taxes or fines. Find out as much as you can about the property owner and the reason for the sale. Find out what the reserve price is and what the buyer premium will be (often about 10% on top of the bid price). If possible, view the property before the auction as these properties are sold “as-is” regardless of your financing requirements.
Licensed Auctioneers
Auctioneers are licensed by the state and must follow the law. Whether you are buying or selling, it is a good idea to know who the licensed auctioneer is and the company he is representing. Look to attend auctions conducted by members of nationally accredited organizations.
Foreclosure Auctions
While an auction does not necessarily represent the last phase of a foreclosure proceeding, it might. If you are attending a foreclosure auction, you should know that the owner can usually redeem themselves until the auction is over. Also, depending on state laws, the property owner may still retain ownership rights until after the auction. If you are the successful bidder, you may not have access to the property until a later date. Also, some states, especially mortgage states, will require you take responsibility for the property, but will have to wait until the sale is court approved before you can take actual possession. Historically, this can take a long time.