Anyone thinking of purchasing through auctions should get a good look at the property beforehand--most companies have at least one opportunity for that, with someone on hand to answer questions. Then get comparables in the neighborhood, so that you don't end up paying twice as much as anyone else has. Check the requirements for bidding--in case you need a cashiers check, or a preapproval from a mortgage company. Find out what the policy is if the contract should fall through--you should be very sure you can perform, and that you aren't going to lose earnest money. Remember, many auction houses have a buyers premium, often 10%, so that what you bid is not exactly what you will pay. It is a good idea to take someone, smart friend, agent, or maybe your accountant, to restrain you if you are prone to bidder enthusiasm, which causes reckless bidding without clear thought. Good luck with your auction! Some of my clients have done very well with auctions!
Liz Bearden, Coldwell Banker
Oct 21, 2009