Many home buyers think that real estate auctions are the best way to get a good deal on a home. While there are certainly deals to be had, auctions also can be dangerous for buyers. Here are a few tips for those brave enough to take on real estate auctions.
Buyers planning to attend an auction are advised to do their homework and know what the property is worth, especially since auctions generally do not offer appraisal contingencies. No one likes to pay more for something than they have to.
Buyers should know what repairs are needed and what it will cost to make the home livable. Many home at found at auctions can have significant damage or deferred maintenance so it’s best to know what you’re getting yourself into before hand.
Maintain control. Many auctions turn into feeding frenzies. The excitement of the moment leads to bidders getting carried away.
Setting and sticking to a maximum price and not forgetting to include the buyer’s premium is critical. With the exception of Foreclosure auctions usually help on the court steps, real estate auctions will add a fee or buyer’s premium to the total bid to compensate the auctioneer and or real estate agents involved in the transaction. These can range between 1 and 4% so be mindful of including that in your budget.
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About Daniel Di Matteo
THE REAL ESTATE BUSINESS HAS LESS TO DO ABOUT SELLING PROPERTIES AND EVERYTHING TO DO ABOUT HELPING PEOPLE.
