Read these 8 Real Estate Auction Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Auction tips and hundreds of other topics.
Auctions of commercial real estate occur frequently. You can easily find commercial real estate for auction through classified ads in your local newspaper and other periodicals. Additionally, larger real estate companies and some auction houses will list commercial sites that are up for auction. Online auction sites, such as eBay, now feature sections devoted to the auction of commercial as well as residential real estate. Auctions held by the US government are also excellent sources for land auctions. The General Services Administration of the US government auctions off old government property, such as office buildings, military bases, and supply areas. These sites are sold at fair market price and often come with buildings available for commercial space.
You've heard the old joke about hucksters trying to sell people the Brooklyn Bridge? Don't be so quick to laugh. You, too, can be tricked in to buying fraudulent property. Before bidding on any land at auction, it pays to do a little research to guard yourself against fraud. First, make sure that the property actually exists. It may sound silly, but it's worth it to check. Next, you need to make sure of the land's environmental credentials -- make sure that it hasn't been the site of an environmental violation or cleanup. If you are planning on building a home on the site, make sure that the land has either municipal water and sewer connections or adequate resources for wells and septic systems. Check to see if the land is accessible by road and if municipal power reaches the site.
There is a large amount of land available for sale by auction through the federal government. Land for sale by the government divides into two categories: real property and public lands. Real property is defined as developed government property -- usually in the form of government land with buildings or other structures on them. Public land is undeveloped land owned by the government that is usually found in Alaska and the Western states of the US. The General Services Administration (GSA) is responsible for selling real property owned by the US government. Contact them to find out about upcoming government real property auctions. The US Department of the Interior controls the sale of public lands. Contact their offices for information on land auctions, though these sales much less frequently.
If you want to find real estate that is being auctioned in your area, all you have to do is a little quick and easy research. First, you should look at the classified sections in local newspapers, which will often list real estate auctions. After that, you should contact both auction houses and real estate companies in your area. Both should be able to tell you whether properties are being auctioned in your area. Finally, the government frequently auctions real estate. It is worth contacting the offices of the General Services Administration (GSA) and the Department of the Interior to see if the government is holding a real estate auction in your area.
Foreclosure occurs when the owners of a property default on the mortgage and the property is seized by the lender. The major causes of foreclosure tend to be divorce, death, or illness. Once the property has been seized, it is then usually sold at auction in order to recoup losses. Auction of the property usually occurs in a courtroom, on the courthouse steps, or at the property itself. If there are no bidders on the property, then the financer of the mortgage usually finances the buyout of the property and acquires the title to the real estate. Bidders should note that when acquiring the property, whether they are subject to any other unpaid debts that exist against the property.
In order to auction your real estate effectively, you need to have a clear idea of the value of your property. The only sure way to do this is to have the property appraised, either by a bank, a private real estate appraiser, or a real estate company. If you cannot afford a professional appraisal, than make inquiries as to selling prices of similar properties in your area and use that information to set your price. The best way to auction your property is through an auction house or real estate brokerage. Both will charge for their services, but they will insure that your property is properly advertised and auctioned. If you don't want to pay for auction or real estate services, you can try selling your property online, though doing this without the aid of an auction professional can be risky.
When buying real estate at auction, you need to thoroughly research the property that you intend to buy before you begin bidding. You should go and visit the property, if possible, to verify its description. Next, you should look at land records kept by the county or city in which the land is located. This should give you some idea of the property's history. You might also want to check with the state government to make sure that no fraud, debt, or crimes have been associated with the property in the past. You should check the zoning regulations that govern the land to make sure that you can use it for the your intended purpose. Additionally, you should check the properties environmental credentials to see if it is in violation of any environmental laws.
There are a number of real estate auctions available online. Large online auction sites, such as eBay, have sections devoted exclusively to property and land. Additionally, auction houses in your area may host real estate auctions online. Online real estate auctions can take several forms. You can bid for ownership of a property, where you receive a deed for the land and property acquired. You can also bid for timeshare agreements, in which you gain part ownership for a home or condominium. Lastly, there is online bidding for rental properties -- in which you bid for the rights to rent a property for a certain amount of time, usually in a vacation destination over a busy travel period.
|Jennifer Mathes, Ph.D.|