How do I buy a house at auction?
Buying a house at auction is quite different from buying a house the conventional way through a private sale. Here are some key differences: There are no contingencies. You cannot simply withdraw the winning bid because you cannot get a mortgage or you cannot sell your current house in time. If you back out, even for a good reason, you could be liable not only for the earnest money (usually 25 percent of the high bid in most auctions), but also for damages which are clearly stated in the signed contract you were required to sign on auction day. When you are interested in buying at an auction first get pre-approved. Then find properties of interest, inspect the property, decide on your maximum bid and attend the auction.
What are the basic benefits of auctions?
There are many benefits of buying at auction. You set your own purchase price. You pay fair market value. There are no lengthy negotiations.
How do I bid at an auction?
In order to bid at an auction, you need to make contact with the auctioneer or the ring person. Ring personnel assist the auctioneer in hearing and acknowledging all bids and assures the bids are accurate. A ring person takes bids from the audience and then passes those on to the auctioneer. To bid, hold up your bid card, your hand or shout "yes." The auctioneer or ring person will make eye contact with you, take your bid and immediately turn and seek another bid. You can remove yourself from the process at any time by shaking your head "no" or saying "no" if the auctioneer or ring person turns your way. Should an auctioneer or ring person misinterpret any of your signals, simply report the mistake right away.