A real estate auction is exactly what it sounds like – an auction sale in which real estate is sold to the highest bidder. Auctions may be for land or houses, and some auctions will include sales for multiple properties.

The Time Period Before the Auction

The thirty-day period before the auction is a vital time for potential bidders. During this time, you have the opportunity to do all of your due diligence, tour properties you’re considering bidding on, and determine how much you can spend on a property. A real estate auction is a fun and exciting event, but be sure you know what you’re getting into before bidding on a property.

Use this time to the best advantage.

It is better to spend a little more time doing research and checking out properties before the auction. Real estate is an investment, but it also carries risk. You don’t want to be surprised after you’ve placed the high bid on a property.

You should make sure to get all of your questions answered during this pre-auction period, because there will not be an opportunity during the auction. Real estate auctions are very quick, and much of the information you need to make a decision will not be available at the auction.

Real Estate Auctions “Travel” Fast

First time auction attendees will be amazed at how quickly the auction progresses. Make sure you are on time. If you are planning on bidding on a property that is two or three down on a list of multiple properties, you should still arrive at the stated auction start time, because you risk missing the property you want.

A real estate auction on a single property may literally be over, from opening comments to ending gavel, in fifteen minutes or less.

Be early to the auction and be prepared for fast action. The auctioneer can pause bidding to answer a question, but do not count on this happening.

Registration at the Auction

Registration for a real estate auction begins anywhere from 30 minutes to two hours before the stated auction time. It is a good idea to arrive as early as possible to make sure you can register before the auction starts.

You will need to show a valid driver’s license, to prove who you are, and fill out a form with some basic information such as your name and how to contact you.

Registration for real estate auctions is free; you can use a personal or certified check to make any down payment that may be necessary after the sale.

Once you have filled out your registration form and received a bidder number, you can ask any last-minute questions you may have and take one last tour of the property, if the auction is being held on the premises.

It is a good idea to attend at least one real estate auction as an observer before attending as a bidder; like any other investment, you should do some research and understand how the process works before you commit yourself.

Opening the Real Estate Auction

Real estate auctions begin promptly at the appointed time. Before the bidding begins, the auctioneer will makes some remarks for the record. These remarks include the terms of sale, bidding methods, and any last minute changes or information that bidders should know about before the sale begins.

Then the auction begins, and it moves very quickly, as stated. Be prepared and know how much you are willing to bid. Do not get caught up in “auction fever” and bid more than you can afford, but be prepared to bid quickly up to your limit.