Here's a general buyer's guide to real estate auctions, based on advice from experts in the field:
- Read the papers, get on a list. The Sunday newspapers are usually jammed with advertisements in real estate sections for property up for auction. Also, auctioneers can put you on their mailing lists and provide a calendar of sales. - Get a brochure. The auction company will send you material that provides basic information on the property, such as total square footage and the latest asking price. Photos are included.- Learn the lingo. Auctioneers have a language of their own. For instance, an "absolute auction" means the property will be sold to the highest bidder regardless of price, while an auction with "reserve" means the owner can reject even the highest bid. A good real estate lawyer or accountant can help. - Inspect the property. Most auction companies have open houses at least a week before the auction date. If none is planned, ask for permission to see the property beforehand. In cases of multiple units up for auction find out if you'll be seeing more than just models.
- Ask questions. You'll want to know what's included in the property - such as kitchen appliances or carpeting - or how long any remaining tenants will be occupying a residence.