Real estate investing has grown in popularity, especially as economic upheavals have resulted in individuals looking for stable forms of income. However, finding investment properties can be challenging, especially if you are just starting out. Seasoned investors have built a network of real estate agents, giving them a look at various properties that fit their parameters. On the other hand, new investors do not have that same network. Real estate auctions can provide them access to multiple options. Let’s dive into what you can expect at a real estate auction.
What is an Auction House?
An auction house is a company that facilitates the buying and selling of assets, from real estate to works of art. Bidding can be done out loud, in a competitive style, or through a sealed bid.
Auctioneers focus on bringing in potential buyers by advertising what is for sale and providing information on the items in a catalog or another method. With real estate auctions, however, there are a few differences.
What Is a Real Estate Auction?
A real estate auction is the public sale of a property through competitive bidding. A homeowner, homebuilder, government, or bank can hold these auctions. In many cases, this means the owner contacts an auction house.
Once a property is placed with an auction house, the auctioneers advertise it and introduce it to prospective buyers. The result is that the property does not have multiple showings and weeks of waiting for offers. Instead, the property’s owner can have the property sold within a short period.
There are benefits for sellers and buyers through the auction process, including:
- Buyers come prepared to make a purchase.
- Quick disposal reduces long-term carrying costs for the owner or bank.
- The property will be sold at actual market value.
- Potential buyers are pre-qualified for financing, so there is no fear that the offer will be rescinded later.
- Eliminates the struggle of numerous and unscheduled showings.
- The seller is out of the negotiations.
- Buyers can find smart investments and know the seller is committed to selling.
- Multi-property auctions allow buyers to see many offerings at the same place and time.
- Auction houses release information about the properties, allowing buyers to determine which properties they want to bid on before the auction.
- Buyers also have a chance to complete their due diligence on the property to determine if it is the right fit for their portfolio.
When you work with a real estate auction house, you can pick what properties you want to bid on and do some essential due diligence. Remember, most of the properties on these auctions are sold as-is, meaning that you accept the current condition. There is no negotiation between the seller and buyer for concessions.
At ShowMeMore Auctions, we provide a platform for sellers and buyers to connect. If you are looking for investment properties, visit our website to find out our current schedule for auctions.
