How to buy at Auction

How to Buy at Auction -- Appraisals -- Auction Situations -- Types of Auctions -- Realtor Forms

How to buy at Auction

The word “Auction” comes from the Latin word “to increase”. A competition is created where purchasers will make offers on a product in increments established by the auctioneer, until only one bidder remains.

The auctioneer uses a chant, or rhythmic combination of words, to generate enthusiasm and to smooth the flow of the bidding process. As buyers you are concerned with three things: the item being offered, the current price bid and the next price being asked for.

Before you go to an auction of any type get prepared. Call the auctioneer and ask for a list of items to be sold and the terms and the conditions that the auction will be conducted under. If it is real estate that you are interested in, get in touch with a bank, S&L or a mortgage company to get pre-approved for a loan.

Attend any open houses or schedule a showing. Since most homes are offered in there existing condition you will want to preview them prior to contacting any contractors for repair estimates. Do your inspections prior to the auction day, so you can take your repairs into consideration when bidding.

Be prepared on auction day. Have your maximum bid in your mind. Make sure you call the auctioneer to confirm the sale time and the location. Get there early. Registration usually begins about two hours prior. The terms and conditions will inform you what you will need to be a registered bidder. Some personal property auctions it could just be your drivers license where some real estate auctions could require a certified check for ten thousand dollars. Once again, know your terms and conditions prior to auction day. It’s awfully hard to get that certified check on Sunday.

It’s auction time now, the auctioneer will give his opening announcements so pay attention. These announcements usually take precedence over and written materials. This is when the principle updates, adds, or deletes any information. Once the auction begins you will see that items are purchased at a rapid pace. Each item offered is like a mini auction. At the end of the day there were actually maybe two hundred little auctions that created the event. Just remember when bidding, if you want it don’t be shy. Yell out and make yourself seen by the auctioneer. Don’t stand behind them and expect to be seen. Also remember when bidding. It’s not like in those beer commercials. Scratching your nose, wiggling your ears or winking at the auctioneer isn’t going to get you noticed. You need to be loud and proud. It’s amazing how loud those eighty year old ladies can yell when they want it. When your time comes and you are the high bidder, and the auctioneer says SOLD, your number please, hold that bidder number up real high and be proud. You have just participle in possible the oldest profession know to man.