Are Real Estate Auctions In US A Viable Option For Buying Property?

Posted by jason michalak on April 8th, 2016

There are many people who choose the traditional way of purchasing a house; looking for months at a time, working with an agent and negotiating the price with a seller. On the other hand, a growing number of people take the rather easy route of buying property atreal estate auctions in US.

It may not suit everyone, but many people are learning the benefits of placing the winning bid. Real estate auctions in California or any other part of the US allow you to buy good properties at reasonable prices. Before we move onto the process, let us first understand what a real estate auction is? In simple terms, a real estate auction is a medium that enables a public sale of properties. If we look in the not-so-distant past, auctions were limited only to real estate professionals and investors. However, this isn’t the case anymore. Anyone who is interested in buying real estate can participate in these auctions.

There are many reasons why a property is auctioned. Amongst them are:

  • The property has been foreclosed

  • The owner of the property is in urgent need of funds

  • Bank, financial institution, or the government holds the rights to sell the property to recover the money the homeowner owed them

But, how would you know when an auction is taking place? You can search physical auctions in newspaper ads and on the internet. These auctions are generally held at conference centers, courthouses, or Auction Company’s office. Real estate auctions are also being held online, and to know about these, you just have to get in touch with a company involved in conducting them.

Live auctions, are different from online auctions in many ways. The biggest difference is the inconvenience of having to be in a certain place at a certain time. Online auctions, allow prospective bidders to bid from anywhere, on any Wi-Fi connected device. Live auctions also need to be completed quickly, usually just 3 or 4 minutes, online auctions allow bidders more time between bids, up to 24 hours. This means bidders don’t feel rushed and have plenty of time to talk to their banker, business partner or financial advisor. Both live and online auctions, begin with a low starting bid but only in an absolute auction is a seller obligated to take the highest bid. Most auctions are offered with a reserve price, if the bidding doesn’t reach the reserve the seller isn’t obligated to take the highest bid. Integrity and experience is important, choose your auction company, wisely.

Whether you choose to bid at a live auction or an online one, be sure and complete your due diligence and thoroughly review all available information on the property. Work with the auction company and confirm there are no liens or any other undisclosed defect on the property. An auction is certainly a very good way of buying real estate, but as it involves huge financial investment, you still should be more wise than impulsive.

Author’s Bio: The author is a blogger. This article is about real estate auctions. For more details: https://www.fre.com/

Like it? Share it!


jason michalak

About the Author

jason michalak
Joined: April 6th, 2016
Articles Posted: 23

More by this author