Top Tips for Buying Property at an Auction

Buying property at an auction can be risky business. Usually each property is sold as is, with no refunds. However, you can do quite a few things to ensure that you find quality Vancouver real estate at these auctions.

Some of the tips to keep in mind before buying a home at a real estate auction include the following:

Make sure you purchase from a trusted dealer. You want to either purchase from a name you trust or from an agent who has proven that he or she has a good track record. Trusted real estate agents will have references from past clients as well as a good standing with organizations such as the Better Business Bureau, and will have a good credit rating.

Get the deal in writing and have it signed. Not much needs to be said about this. No contract should be verbal because it is hard to prove in court, and both parties may forget what has been said in the agreement. Get all deals in writing. That is the bottom line. Handshakes were necessary in the old days but this is a new generation. You need to protect your self and your business as much as possible.

If possible involve a lawyer. If you can afford a lawyer or other qualified legal aid to be present when you sign a deal with someone, it would benefit you and your company. You also may need advice from a solicitor or chartered surveyor during the process of purchasing a property, as well as a professional appraiser.

Study the Lower Mainland property being sold before purchase. You can even order a catalog from some auctions that plan their sales weeks in advance of posting. Some listings will run for quite awhile. Read all the information that you see regarding properties for sale very carefully and identify ones that would be of most interest to you.

Ask neighbors and agents for their opinion. While you are doing research on the property that you are thinking of purchasing a Vancouver home through an auction, you will want to ask neighbors and agents for their personal opinion. This will give you an idea of how legitimate the sale really is, and you will learn whether or not it is worth it to purchase a particular property as well.

Make sure the listing of the property is accurate. The listing should be straightforward, and you should be able to know what exactly you are getting your self into.

Beware that bidding is a binding contract. This type of contract is as legal as the one that is signed between two private parties. If you are attending a live auction in person beware that when the hammer falls or the auctioneer yells “sold” that you are legally committed to purchasing the item that you have bid on. Make sure you bid on a piece of property that you know you want. This will cause you less stress later on.

Make sure you have deposit ready for auction day. If you do not have your deposit ready in order to purchase property at an auction you could lose your chance of purchasing that property. Usually you will need to pay that deposit within a two-week period.

Plan ahead if you need a loan. If you need to take out a loan to purchase auction property you will want to make sure you find a way to obtain that money before the date of the auction. If you do not, you will need to find a way to finance your purchase within 20 days of the day of the auction. Otherwise, you will lose the sale and any deposit you put down on the sale.

Be careful during the bidding process. Make sure you are bidding on what you want to bid on. Also, if you do not want to bid on a property make sure you careful what type of message you send. For example, auctioneer sees you making a hand gesture during the bidding process they could mistake it for your desire to bid. Make sure you communicate this message very carefully, and only if you truly intend to bid. This is a very serious process.

Make your intent to bid very clear. If you choose to bid at an auction that you will attend in person you will want to make sure you make that very clear. You will need to raise your hand up high enough when the auctioneer calls out for more bids. Also, it will help if you sit where you will be seen.

Decide on a definite maximum bid price. Watch yourself, and don’t bid higher than you can afford. Remember, you are at an auction to save money, not to spend even more money. If you cannot bid at a price you can afford perhaps you can entrust someone to bid on your behalf.

Sometimes, if you cannot physically attend an auction, you can present your bid in writing or by telephone. Other times that same auction will be available online as well.

There is so much involved in purchasing in an auction. However, if you know for sure what you are looking for and you do your homework you could walk away with some fine deals from an auction. You can find quite a few online resources to auctions to take a look at.

Most auction services will cost you a small membership fee, which is usually paid once in a lifetime or monthly. The fee charged to become involved in buying at real estate auctions varies from auction to auction. You can find legitimate real estate auction agents who market themselves both online and offline.

For more information on buying or selling your home in Vancouver, including Yaletown, Kits, Point Grey, and False Creek, visit Amalia Laipis, ReMax realtor at www.wesellvancouver.ca.