Buying at Auction can be exciting, fun and profitable. Often items will be sold far below retail prices. If you do your research you will find auctions to be a great place to do your shopping. On-site Auctions are also a great place to network and meet new people. Often they are the big social event for the neighborhood they are located in.
Here are a few tips that be helpful for your next auction shopping spree.
The personal property items or real estate to be sold at auction will most likely offer an public open house to allow potential buyers the opportunity to inspect the property. This is a very important step to you the potential buyer. Items sold at auction are sold "as is, where is" which means you are responsible for verifying the condition of the property. Neither the seller, nor the auctioneers will guarantee the condition of property sold at auction which means that responsibility falls squarely onto the buyer. You the buyer are responsible for inspecting the items you wish to bid on. These inspections should include working condition, pest inspections, structural, whole home, appraisal and anything else that might have a negative impact on your desire or ability to make the purchase. Further on day of sale, when you purchase an item, make sure to label the items or place them in an area you can keep an eye on. Once you are recorded as the buyer, you buy it whether you take it home or not. If an item comes up missing, you will still be liable for paying for that item.
When purchasing an item or real estate at an auction, there is no contingency on financing. Personal property is due day of sale by nearly all auctioneers and must be paid before the property can be removed from the auction site. For real property, You will be required as the winning bidder to pay typically 10% to 20% down in earnest money deposit day of sale. That deposit is non-refundable and if your money is not in the bank or your loan is not 100% guaranteed to close, you will loose that deposit. If you close on the property, that money is credited to you toward the purchase. No risk to you so long as you do your homework before the auction.
You should arrive early to the auction site. Some auctions will have hundreds of attendees and registering to bid can take some time. You will be issued a bidder number which allows you to bid on any item you wish. This number is yours throughout the duration of the auction and any items charged to your number you will be responsible for paying for.
Once you have purchase all items you wish to buy, you will need to proceed to the cashier where you will pay for your items before loading them. Remember to allow time for this process since often their may be a line to contend with.
Finally you will need to load and secure the bargains you have purchased and head on your merry way.
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