A unique way to buy a house is in an auction setting. Instead of you finding a house for sale and submitting an offer, the auction process is a little more involved because multiple people are competing for the same property. It's possible to get a favorable deal when you buy a house at an auction, but it's imperative that you take the right approach so that you're satisfied in the end — whether you get the house or not. Here are some points that you'll want to definitely keep in mind if you're looking at buying a house through this format:
Thoroughly Assess Things In Advance
Part of being successful when you're planning to buy a house at an auction is knowing the ins and outs of the property extensively. Make sure that you thoroughly assess the house in advance of the auction by scheduling as many private showings as you need. You want to have a clear picture of exactly what you and your agent feel that the home is worth to you. For example, if there are multiple things inside the home that you'll need to replace in the near future, such as flooring and appliances, you want to be sure that you don't overpay at the auction.
Establish A Value With Your Agent
Your real estate agent should be able to help you come up with a fair value to bid for the house. Obviously, you'll ideally be able to get the house for less than this number, but you should have a number in mind. Sometimes, agents will advise having two numbers in mind — one number that is an ideal price to pay for the house, and another that is the absolute maximum that you'd pay. One of the most important rules for being in a real estate auction is to stop bidding as soon as the bidding reaches your maximum number.
Be Comfortable With Walking Away
Some people bid more than they want at real estate auctions because they want to feel as though they're a winner. You need to know that if someone bids more than you for the house, you haven't "lost." Rather, someone just felt as though the house was worth more to him or her. Being able to walk away will prevent you from getting caught up in the excitement and competition of the auction and potentially spending more than is comfortable for you. Remember, if you fail to win the auction, there will be other houses to consider buying.