If you want to make sure you get a good deal at a real estate auction, you’ve
got to know the market into which you’re about to buy.
What’s that mean? Simply put, you need to know the value of other
similar property in your area before you go to the real estate auction. It is
not difficult to find out.
You could walk up to people with property similar to what you hope to buy at
the real estate auction and ask how much their house is worth. Most people
really don’t know or will exaggerate the amount intentionally. Your best bet is
to start at your local tax assessor’s office.
It’s all a matter of public record so don’t feel creepy about asking for the
information. Tell the assessor or clerk that you hope to buy some property at a
real estate auction and you want to see how other similar properties in the area
are appraised. It’s best to have a few addresses ready, but if the assessor or
clerk isn’t busy he or she may offer some assistance by suggesting similar
properties. They may also be able to recollect any in the area that have also
recently been purchased through real estate auction.
When it comes to appraisals on the tax books, there was a time when they were
generally off, actually lower than the actual value of the home. These days,
however, tax books are pretty close to market appraisal due to improved
technology and the need for most communities to collect as much in taxes as
possible. The information from the tax assessor’s office is free (unless you
have copies made for yourself) and can be a big help in planning your bid on the
real estate auction property.
Another way to learn about the market value before placing your real estate
auction bid is to talk to area real estate offices. Ask to see a list of
properties available, including any that sold recently. Seeing the list price of
the properties that sold will also help you get a price idea in mind before you
place a bid at the real estate auction.
If you’ve been looking at a piece of property that’s going to sell at a real
estate auction, talk to nearby neighbors to learn more about the property. Does
it flood at the slightest rain? Has there ever been a fire there? What kind of
people lived there or owned it before and why did they leave? The information
might offer good bits of knowledge before you enter a bid at the real estate
auction. It will help give you an idea of the condition of the property which is
always important to know before making a bid at the real estate auction.
If you’re hoping to buy specifically at a real estate auction, it’s probably
because you’re hoping for a great deal. You can get a good deal at a real estate
auction as long as you go into it knowing a little about the local real estate
market. If you haven’t particularly decided on how you would like to buy your
real estate, auction is a non-traditional possibility for you to consider. Just
know the market before you place a bid at the real estate auction.
