What to do in an Auction situation??

**misch.chief** · 06-17-2010, 04:06 AM

I am not sure how many of you would have come across this situation before but I was just wondering what the best advice is when going to auction on a house??

It is a house my friend has absolutely fallen in love with and has har heart set on living there. Unfortunately there are 3 other couples who have taken a very keen interest in it and also want to make offers.

The house has now gone to auction and I am a bit unsure of the advice I should give her. She really loves the house and is willing to spend a bit more than she was planning to in order to afford it. The only thing is I don't want her to put too much money down which she cannot afford when the other couples may not put as much down.

What is the best thing to do?

**jason_simpson** · 08-04-2010, 03:57 AM

Know your limits and be willing to let go if the bid goes higher than you want to pay. In a real estate auction it is easy to get involved with the emotionalism of winning and lose sight of getting the bargain you want.

Bring cash. The whole point of buying and selling at an auction is that you will be paying cash for the property. Later you can sell the property to someone who is aided with financing, but auctions are all about cash.

**Jennifer USA** · 08-19-2010, 12:58 AM

When you are going in an auction you should keep in mind following things.

>Know the purchasing rules of the auction house. Sellers pay a commission to the house for their services, from 5 percent to 15 percent, depending on the value of the piece. Similarly, buyers may be required to pay a premium to auction owners for high-end sales

>Get the timing down. Country auctions and auction house events will last from just a few hours to a day. Online auctions are timed.

>Ask questions about the provenance (ownership history) of a piece.

>Decide on a bid limit for yourself, after inspecting merchandise. It's easy to get swept up in the excitement of a live auction and overbid

**misch.chief** · 08-20-2010, 01:14 AM

Thanks for all your help guys. She didn't get the house in the end because other bidders were willing to pay more. But i stuck to your advice and told her to keep her bids real - which she did.

Since then she has been to a couple auctions and got the feel of things so hopefully she'll find somewhere soon

**gotlivechat** · 09-21-2010, 11:11 AM

You have to be careful at auctions, especially if there are a number of people there. It seems there's more emphasis (by the last few bidders near the end of auction) on 'winning' the home, than putting in a reasonable bid. Most likely due to emotions involved in the 'competition' to get the home

**FLRES** · 09-22-2010, 12:26 AM

There can be several different kinds of auctions, closed bids, open bids, either way, there is always time to do your homework by doing a property inspection and valuating the property. Then make sure your financial means are in order, cash or financing. Now you are ready to compete.