Tips for Buying at Auction--April 3, 2008

Ben Anderson, a real estate auctioneer and member the National Auctioneers Association, predicts auctions may make up as much as 15 percent to 20 percent of all real estate sales given nationwide foreclosure rates. Traditionally, auctions represent just 8 percent to 10 percent of such sales.Here are his tips for buying at auction:

Conduct due diligence in advance of the auction. Inspect the property. Review any available documentation, such as previous inspections, appraisals, and seller disclosure statements.
Review the title search. The seller's representative usually requests this at the time of the listing.
Arrange for financing. Clarify with the lender the qualifications and the amount available for a loan.
Know the market. Check comparable properties and what they have sold for, and analyze nearby listings.
Review the terms and conditions of the auction. Before auction day get a copy of the purchase agreement and the auctioneer's terms and conditions. Read and understand them.Source: Denver Post, Christian Toto (03/16/08)