What is the Auction Process?
The Auction Process involves selling or buying goods and services by offering them for bids. It often involves buying items from the lowest bidder or selling them to the highest bidder. All auctions are conducted on special occasions that are designed to buy or sell items.
This is also known as real estate auctions, and it is an event where houses are sold to investor buyers through auction pricing. House Auctions are forms of investment buying where houses are purchased below the market value. There are different kinds of properties offered up for auctions, they include:
- Government repossessed properties.
- Bank repossessed properties.
- House owned by divorced couples.
- Houses owned by a deceased individual and the heirs have no interest in keeping ownership.
Types of House Auctions
There are mainly three types of House Auctions and they are:
- Minimum-bid house Auctions: In these types of auctions, a minimum amount is published in magazines, newspapers, and auction platforms. This is the minimum amount that is required before an individual is considered in the running for the house.
- Reserve house Auctions: This type of auction offers the highest bid to the seller of the house with a set period. This period is the time required for the seller to either accept or reject the bid.
- Absolute house Auctions: This type of auction is popular with foreclosures, here, the highest bidder wins the ownership of the investment property, there is no minimum bid required.
Guide For Auctioning A House
When buying a three storey house from an auction, there are certain steps to take to avoid being scammed. They are:
- Identify a real-house auction: Finding house Auctions is very easy. Be on the lookout for adverts via newspapers, magazines, and trusted official websites. Another way is via recommendations from a trusted source.
- Arrange for a property viewing: After identifying the real-house auction, arrange for a house viewing with the house auctioneer, while ensuring that a professional accompanies you. House viewing is the process where a potential buyer comes to inspect the property to ascertain the level of damage done or the level of repairs required. He also ascertains if the house is a good investment.
- Conduct a property analysis: Similar to the property viewing, this analysis determines if the property will bring money in.
- Check for claims: This is an important aspect to consider when buying a house at an auction to avoid purchasing a house with bank claims l, tax claims, and/or second mortgages.
- Put your financing in place: You as the investor should consider all the costs involved in acquiring the investment property and arrange your finances in order, ahead of the auction day.
- Arrival: Arrive at the auction venue early, pick out a spot with a good and clear view of the auctioneer, and vice versa.
- Have a picture of the property you wish to buy. You can also have copies of the house’s utility bills as proof that you are aware of what you want.
- Be ready to close the bid.
House Auctions are great places to secure a good investment at a good price and are also a place to secure a poor investment at an outrageous price. The guide in this article will help you avoid the bad aspect of house auctions.