So are you ready for an auction? In the last post we spoke about the upcoming auction here in Long Beach. In today's most I want to cover 4 things that you absolutely must to prior to walking into that auction.
4 MUST DO Items that you need to do prior to attending an auction
- Pre-approve with a lender you know - I know that the auction company conveniently allows you to pre-approve through their lender. While that is all well and good you want to pre-approve through someone whom you have used in the past or been referred to.
- Inspect the property ahead of time - That's right most auction companies don't allow you to inspect after you bought it but they do allow you to take a look prior to the auction. The one coming up in Long Beach,CA has a day where you can get into the properties through various open houses.
- Consult Your Real Estate Professional - Now I am not saying this because I happen to be a real estate broker but you should consult an expert in the area you are buying and preferably one you have used in the past or one that has been referred to you. Remember the auction company wants the most for the property not what is in YOUR best interest. Some Realtors will work as a consultant for you for auctions as most auction houses do not pay commissions to Realtors. Some Realtors charge a flat hourly rate for the time at the auction while others charge a flat fee. Make sure they help you analyze the properties you want to bid on ahead of time.
- Know the Rules - This is very important. Some auction company's have a buyer premium that is 5% or more on top of your final bid. Make sure you factor this in to what you will pay and make sure you know if you have financing contingencies or any other real estate protections. Not knowing the rules could cost you big $$$$.
Remember the auction is coming up on April 5th. To see more details on this auction refer to part 1 of Long Beach Home Auction.
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