Guide for First-Time Real Estate Auction Bidders
If you're a first-time bidder in an SVN Gilmore Auction real estate auction, you may be feeling a mix of excitement and apprehension. Our real estate auctions offer a unique opportunity to purchase properties at great, competitive prices. But all real estate auctions are not the same. To help you navigate the auction process with confidence, our team has put together this guide for first-time real estate auction bidders. Let's dive in!
1.Research the Auction: Before participating in an auction, take the time to research and understand how the process works. Familiarize yourself with different types of auctions, such as online auctions, live auctions, or sealed bid auctions. Research the auction company and review the terms and conditions for your chosen auction.
2.Set a Budget or Range: Establish a clear budget and determine your range of value. We recommend that you set three (3) values,
a.“A Steal”, this is the price that is the best deal you could hope for.
b.“A Really Good Value”, this would be in the middle of your research values.
c.“Maximum Bid”, this is the number that you will not exceed. Consider factors such as comparable property values range, potential renovation costs, and your financial capacity. Stick to your budget during the auction to avoid overpaying.
3.Property Due Diligence: Thoroughly research the property you're interested in. Gather information on its location, market value range, potential repairs, or renovations, and any legal or zoning considerations. Conduct a property inspection to assess its condition.
4.Attend a Preview or Open House: Take advantage of pre-auction events such as property previews or open houses. These events allow you to examine the property up close, ask questions, check the roof, take photos/videos, kick the tires, and get a better sense of its value and potential.
5.Review Auction Terms: Carefully review the auction terms and conditions, including the buyer's premium, deposit requirements, and any contingencies. Understand the payment timeline and closing process. Also, review the purchase agreement that you will be required to sign. Seek clarification from the auction company if you have any questions.
6.Register as a Bidder: Complete the bidder registration process to receive login credentials for an online auction. Provide the necessary contact information, password, and financial information required by the auction company.
7.Bidding Strategies: Develop a bidding strategy that aligns with your budget/range and desired outcome. Consider employing tactics like a “Max” bid where the system bids for you, bidding early to discourage competitors, or waiting until the end for a final push. Stay disciplined and avoid getting caught up in emotional bidding.
8.Stay Engaged During the Auction: During the auction, actively monitor the bidding process and stay engaged. Pay attention and look for the auction company’s texts/emails, announcements, and bid increments. Be prepared to act quickly and confidently when your property is open for bidding. Be aware of the scheduled closing time and if the system supports last minute dynamic extensions.
9.Seek Professional Advice: Consider seeking guidance from real estate professionals, such as real estate agents/brokers. They can provide valuable insights on comparable property values, help you navigate the auction process, and offer advice based on their expertise.
10.Closing the Deal: If you emerge as the winning bidder, be prepared to fulfill the auction's requirements promptly. Finalize the necessary paperwork, arrange for delivery of the deposit, and meet the payment deadlines outlined in the auction terms.
Real estate auctions present a unique opportunity for first-time bidders to purchase properties at competitive prices. By conducting thorough research, setting a budget/range, and following these tips, you'll be well-prepared to participate in a real estate auction with confidence. Remember to stay focused, adhere to your budget, and make informed decisions throughout the process. Good luck with your first real estate auction!
About SVN Gilmore Auction & Realty Co.:
SVN Gilmore Auction is a member of SVN Auction Services and is a provider of date-specific real estate auctions and special asset solutions. It encompasses an elite group of senior marketing advisors covering the United States who specialize in accelerated marketing services for real estate assets. SVN Auction Services offers the industry’s most comprehensive spectrum of auction solutions — from rapid asset resolution and 30-day marketing auctions to wide area and high impact / high visibility auction events. As part of one of the most recognized and reputable commercial real estate firms in the industry, SVN Gilmore Auction is supported by SVN International, which features 200 locations serving more than 500 markets. This relationship provides outstanding opportunities for SVN Auction Services to serve clients needing to move assets in accelerated time frames and creates significant value for buyers and sellers.