Are you thinking about attending your first home auction and wondering what to expect? Elite Auctions is here to help with answers to some of the most common questions asked by first-time auction attendees.
Stepping into a high-end home auction can feel like entering a different world – but it doesn’t have to. By doing your research beforehand and knowing what to expect, you’re sure to have a smooth, enjoyable experience.
Read on for everything you need to know before attending your first luxury home auction!
View the Property with Trained Eyes
Before you even decide to attend an auction where you might want to place a bid, you’ll have some homework to do. For any luxury property you’re seriously considering, you’ll want to hire a professional home inspector to come along during the walk-through. While foreclosure auctions, typically seen as quite risky, don’t usually give you an opportunity to have an inspector look at the property, luxury real estate auctions work differently. Elite Auctions, for example, allows you to schedule a timeframe to bring your own home inspector in to evaluate the residence.
Consult Your Own Real Estate Agent
It’s not required to have a real estate agent of your own when purchasing a property at auction; however, having a professional in your corner can certainly help. Your real estate agent can assist by pulling comparable home listings in the area, reviewing price trends, and offering information about the location in which you’re thinking about making a purchase. Many larger agencies have an agent that specializes or stays up to date on local home auctions, and that insight and awareness can be invaluable. Your agent will also be able to help you navigate the (sometimes tedious) paperwork throughout the purchase process.
Line up Your Financing
If you’re not planning to pay cash for the property you’re purchasing at auction, you’ll need to get pre-approved for a mortgage first. Falling through on an auction win will often result in getting you banned from that brokerage’s auctions indefinitely. Don’t risk it – make sure you know exactly what your budget is and the amount you were pre-approved for.
Register and Attend the Auction
Some auctions are held online, while others are in person. For either type, you’ll need to register ahead of time in order to place a bid. At an in-person auction, you’ll pick up an official paddle of some sort to raise when you wish to make a bid. Professionals advise against letting yourself get swept away in the heat of the moment; it’s crucial to know your spending limit and stick to it, no matter what type of bidding frenzy ensues.
Go in Prepared on Auction Day
When you step into the auction on the big day, you’ll want to bring a valid photo ID, the minimum deposit required if you win the auction (it’s best to find out what this is in advance), and a copy of your pre-approved mortgage paperwork, if applicable. Reputable auction companies will let you know exactly what to expect on auction day, so you can plan accordingly.
Elite Auctions offers a comprehensive information packet and registration guide that provides everything you’ll need to know about the property and the auction process before auction day. This includes the property’s opening bid, required deposits, and any other salient information regarding that property.
Now that you know what to expect, you’re ready to attend (and enjoy) your first luxury home auction. Browse our upcoming auctions to find your new dream home or contact Elite Auctions today for more information!
