Preparing For Real Estate Auctions

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Preparing For Real Estate Auctions Powered By Docstoc
					In recent times, real estate auctions have emerged as a way of buying and
selling both commercial and residential properties, particularly
foreclosures. Whether you are planning to take part in one of these
auctions for the first time or have been bidding on properties available
at auctions for quite some time, here are a few useful tips that will
help you make the most of this venture.

 There was a time when bidding at real estate auctions was perceived as a
daunting task that was best suited for those with years of experience in
the field and who had deep pockets. However, this perception is changing
fast with real estate agents across the country recommending that their
clients claim a share of the real estate pie by bidding at these auctions
and buying property at cheap prices.

 It is always a good idea to do your homework before bidding at real
estate auctions. In order to get a better understanding of the entire
process and the biding pattern of other buyers, you should attend a few
local auctions. This will also give you an idea about the value of
property in a particular area.

 The next thing that you need to do is set your budget and make prior
arrangements for the financing before the auction date. Setting a budget
limit can give you an edge and help you win an auction by outbidding a
potential buyer. It is extremely important to account for additional
costs such as the taxes and legal expenditures at the time of deciding
the budget. Your agent's expertise can prove to be quite helpful in this

 Do your homework well before bidding for a property. You can enlist the
help of your agent for this purpose and get all the necessary information
about the property including the terms and conditions listed in its
Contract of Sale. In addition to that, you should also take a thorough
look at its maintenance papers and various certifications pertaining to
building safety and pest inspections. Keep track of any changes that are
made to the Contract of Sale until the date of the auction.

 Lastly, on the day of auction, it is extremely important that you bid
confidently. It may help your case if you initiate the bidding as that
shows that you are genuinely interested in buying the property. At the
same time, do not get carried away in the process and control your
bidding so that you do not exceed the budget you have set for yourself
after consulting your agent.

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