Prepare for a Property Auction: Top Things You Need to Know

Property auctions are some of the best ways to sell a property that is otherwise producing problems on the normal market or to acquire investment properties, new homes, and land properties at more reasonable prices than you would once a realtor gets involved. 

However, due to the unique nature of property auctions, they have unique processes and traits that you need to be aware of from both sides of the equation. 

Today, the team at Auction Flippers prepared a mini guide for how to prepare for property auctions, so you can find success at your next property auction. 

Preparing for a Property Auction as a Seller

If you’re preparing to sell your property at auction, there are some things you should consider before setting up the auction or even agreeing to do it at all. 

1: Setting a Bottom Line

You are not guaranteed to get the full value of your home when you sell it at auction. Keep in mind that the people bidding are attempting to get a deal on the property. Without a minimum asking price, your property could sell for a ridiculously low rate. 

Put effort into developing a minimum asking price that is below the property’s value, but still high enough to ensure you meet the absolute bare minimum requirements for you to sell the home. Even if just one person bids, you’ll be guaranteed to receive that amount. 

2: Provide Enough Information

For online auctions, it’s important to provide as many details as possible and be honest about the condition of the entire property; as well as various traits that buyers need to know about such as the grade of the land, potential damage-prone areas, zoning restrictions, and other factors. 

If you fail to list this information or hide flaws of the property from buyers, one of two things will happen. You won’t get any bids, because buyers don’t want to buy blindly, or the sale can be challenged if the buyer finds out you lied about various things. 

Preparing for Auction as a Buyer

If you’re buying a property at auction, you need to put in even more prep work than sellers do. 

1: Research the Property

If you’re doing an online auction, you need to understand every detail of the property you can to avoid surprises when you arrive at it for the first time. Dig into the information available on the listing, but do your own research for any property you’re serious about bidding on, as well. 

2: Prepare Your Financial Life Ahead of Time

While Auction Flippers guarantees to finance, that doesn’t mean you should rush into property purchases without ensuring that you’re financially ready for the purchase and the post-purchase responsibilities. Set your budget (including what you’ll get from financing) well ahead of time. 

3: Understand the Platform’s Deed Transfer Process

This is a big one for us. Receiving the physical deed takes time, but we provide a digital copy once the purchase is complete. Understand this before you purchase so you know when you’ll get the deed in hand and ready to be used. 

4: Research the Area of the Property

The property isn’t the only factor you should consider. The surrounding area will impact your enjoyment of the property or your ability to profit from it. Make sure that you thoroughly research the surrounding area on your own. 

Preparing for an online property auction requires careful consideration of several important factors. From understanding, every detail of the property listing to preparing your finances ahead of time, to research the surrounding area, taking these steps will help you bid with confidence and avoid surprises. 

We hope that we helped you to prepare for the property auction. By following these tips, you can ensure a successful property auction experience and achieve your desired outcome.