A lot of people look for foreclosed homes to buy so they can purchase them at cheaper prices, and many of these types of homes are sold through real estate auctions. If you are interested in buying a house at an auction, it is very important to find out all the rules before you attend the auction. If you do not know the rules and do not come prepared, you may miss your opportunity to buy the house that is being auctioned off. Here are some of the rules that often apply when homes are sold through auctions.
You may need cash to bid
In order for you to even bid on the house that is being auctioned off, you may have to pay a cash deposit. This amount can vary, and it is typically refunded at the end of the auction if you do not win the bidding. If you do not have the cash deposit, you will not have the ability to bid, which is why you should call the auction company ahead of time to find out if this is required.
You may need a cashier's check
A second common requirement for homes that are sold at auctions is the need for a cashier's check. If you plan on bidding on the house, you may need to show the auction company your cashier's check before the bidding begins. You will need to call ahead of time to find out what the amount will be that is needed, and you must make sure you bring the check with you on auction day.
You will need to research the home
The other thing you may want to ask the auction company about is whether you will be able to enter the home on auction day. This is something that can be allowed in some cases, but it is often prohibited. In other words, you will be buying the house sight-unseen, except that you will be able to see the exterior of the house.
Because of this, you may want to research the home, its title, and any information related to it. This will help you learn more about the house and find out if there are any liens on the house that you will inherit if you purchase the home.
If you have any questions about foreclosed homes or homes sold at auctions, talk to a real estate agent today.