The Benefits of Buying a House at Auction

With all of the homes for sale these days, it’s only natural to become curious about some of the properties in your area. Of course, the tried-and-true way of buying a house is going through a real estate agent, getting approved for financing, and going through the whole mortgage process. But what about buying a house at auction? You may have passed by a historic home that has a sign out front advertising an upcoming real estate auction, and you may start to wonder, is this a good way to buy a home? Well, you may be surprised by just how good real estate auctions can be, and when it's time to look for a new home for yourself, you’ll want to consider an auction property. Here are some of the benefits of buying a house at auction.

Spending Less, Saving Time

There are various types of auctions, which means that it’s important to understand how the auction system works before tossing all of your chips into the bidding game. Real estate auctions generally fall into the following categories:

·         Absolute Auction: sells to the highest bidder, regardless of price.

·         Reserve Auction: an amount is set, and the seller has the right to refuse bids if they don’t meet this amount.

·         Minimum Bid Auction: a known minimum bid is set that the seller will accept for the home.

When you get involved in certain types of auctions, like an Absolute Auction, you have the potential to buy a home for much less than current market values, which can save you a lot of money in the long run.

This means that the owner desires to sell the property quickly without a lot of the stresses that go along with a traditional sale. Selling a property via auction means that there is a guaranteed date the property will be sold, especially if it’s being sold absolute. That’s the one element that can’t be guaranteed in a traditional listing. Auctioning a property also gives more potential buyers the opportunity to make an offer versus in any traditional list, where a seller may except the first offer they receive. Maybe there was someone else who was willing to pay more but didn’t get there in time. In an auction situation, sellers won’t have to settle on the first offer.

Getting More Home for the Money

Many auction properties will also be included with furnishings, which can help out with the rising cost of expenses that go along with buying a home. Although this will vary from auction to auction, if this is something you’re interested in, chances are you’re better off looking at real estate auctions if you want a chance at getting a furnished home.

Multiple Options to Bid

Many auctioneers will offer various ways in which to place a bid on a property. This means that even if you’re not in the area and wish to make an offer, you’ll be able to online. On location and online bidding make the auction process simple and convenient, allowing you to view the home and place your bid at a time that works for you.

So, the next time you pass by a home that’s selling at auction, keep these benefits in mind. You may be surprised by how much you’re able to get with a home that fits securely within your budget, as well as the seamless nature of the overall auction process.