If you're inexperienced at home buying through auctions, you need to know a few things before going. Always check your facts firsthand; that is, never bid on property you haven't had an opportunity to personally inspect. The agent is there to help, but you have to manage the information flow. Always question everything and never tell the agent anything like your price range, limitations or cash flow. She may use this information to her advantage. Another thing that can help is knowing the rules of the actual auction. While every auction is different, most have certain factors in common.
Pre-Auction
Part of selling or buying anything is understanding market rules. Understanding real estate auction rules will help to make sense of the auction process and your options prior to registration. If the auction is at the property location, arrive early to make a last-minute inspection. Read the contract of the sale and the auction rules carefully. Typically, contracts are put on display approximately 30 minutes before the auction begins.
Registration
You must register and get a bidder's number in order to place a bid. Generally, this means you must provide some form of ID, such as a driver's license, and your address. This is how the auction will contact you about winning bids or upcoming auctions. Get a catalog, which acts as an inventory list. It will also have important information regarding the property and placing bids.
Terms and Conditions
Review common terms and conditions. The auctioneer will usually recite these at the start of the auction. Terms and conditions will outline payment terms (cash or credit), the terms of the sale and a brief outline of any damage that was not disclosed at the time of auction. Real estate usually sells for a reserve or upset price. This means the owner has set a minimum price for the property. The auctioneer is not obligated to disclose the reserve price, but will most likely notify participants if there is one.
