You’ve seen auctions on TV: they’re fast-paced high-energy events. While that can be true in reality, there’s a bit more to an auction than meets the eye. If you’re a first-time buyer attending an auction, here are a few tips you might find useful before the big day.
Get Your Finances Ready
We do 30 days of marketing so you have 30 days to prepare with our help. The first step is preparing your finances and deciding whether or not you will need assistance in the form of a loan, whether that be through a bank, loan agency, etc. When you meet with your wealth manager, make sure to discuss how property acquisition works for you. If a loan is necessary, you will need to start the pre-approval process prior to the auction date. Most auctions are cash deals, which means a buyer already has funds readily available to close, but we welcome the use of loans as long as our contract is fulfilled within 30 days after the auction.
When you’re preparing your finances, also consider how you want to prepare your down payment. We require a down payment on the day of the auction anywhere between 10%-30% depending on the property we are selling, so be sure to read the auction specific terms and conditions before placing your bid. We accept most forms of payment: cash, personal/business check (with proof of funds), and wire transfers.
Lastly, set a bidding limit and stick to it. There’s an art to balancing the too-low and too-high bids, one that comes with experience. But, if you go past your bidding limit, you could be setting yourself up for failure. Coming in with a plan and a limit is a necessity to doing well at an auction!
Check the Property
You usually have 30 days to view the property, which leaves plenty of time to get to know the property you want to bid on! Start with an inspection! If Dempsey doesn’t have the property professionally inspected or surveyed, you may want to get the property surveyed yourself. We actually encourage this so our buyers can be as knowledgeable and prepared as possible.
We also recommend that you check more than just the house’s condition! Tour the property in an open house, check for things like noise levels, and do your research on the neighborhood or area. This quality of life check is often missed and is incredibly valuable.
Visit Other Auctions
We recommend you go to a few auctions before the one you’re interested in, especially if you’re entering one of our auctions as a first-time buyer! An auction is a high-energy, exciting event, but it can be intimidating to jump in with little experience. You can get to know the language, the strategies, and slowly start to hone your bidding skills. At the very least, you’ll gain the confidence you need to place your bids!
It’s Auction Time!
On auction day, get ready to bid! And, if you win, you get the deed and keys after the balance is paid at closing. Whether you’re a first-time buyer or a seasoned pro, we welcome each of you to our auctions! Keep up with new auctions here on our website, our Facebook and Instagram, or by signing up for our newsletter.