What You Need to Do Before Attending a Home Auction

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As a home buyer, you may be looking at auctions to find your new home. Before you raise your auction paddle or tag and hope to hear "Sold!" there are a few things you need to do.

Check Out the House

When a house that you are interested in goes up for auction, check it out. Make an appointment for a showing and look everything over thoroughly. Ask for specs on the home and property. Ask about recent home inspections and if there haven't been any, arrange to have the house looked at. You will need to know what repairs are going to be required before you decide to start bidding.

Do Your Homework

Research the home and property before the auction. Learn everything you can about the neighborhood and the house that is being sold. Talk to neighbors if you can as sometimes you can learn a lot about a home's issues from the people who live around it.

There are a few questions you will need to ask the real estate auctioneer ahead of time, such as:
  • Has the property been surveyed recently or will that need to be done? 
  • After the auction is finished, when will the buyer be able to take possession?
  • Are there any liens against the property?
Get Your Mortgage Approved

Talk to your lender about the property that you are looking at. Get your mortgage approved before the date of the auction and make sure you know everything you will need to do if yours is the winning bid. Take all appropriate paperwork about the mortgage with you to the auction.

Know Your Top Bid

Know what your top dollar bid will be before the auction starts. Keep in mind that your mortgage amount should include the cost of improving the property, so the cost of purchase should only use a portion of the funding allocated.

An auction can bring you a quality home at a great price. With some wise planning beforehand and some elbow grease after the fact, a home auction can bring you a worthwhile investment and a great home.

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