Real Estate Auctions
Know the Market Before Placing a Bid
By Buyincomeproperty.com
Nov 2, 2005, 12:06

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.