How to be a wise bidder at a real estate auction, step 2

How to be a wise bidder at a real estate auction, step 2

When I speak with someone interested in purchasing a property (home, commercial building, or acreage) of any kind through the auction method, the number one concern is what is the bid price going to be? Last month, I spoke about step one on the way to becoming a wise bidder. Following these steps will not only help you feel confident about your decision going into the auction, but it will also comfort you in knowing you made the right choice, and only paid one bid more than the next bidder was willing to pay.

STEP TWO: Finish Your Pre-Auction Investigation
Now you need to be somewhat like Sherlock Holmes in the step-two process. Almost all auctions will allow pre-auction inspections. This is your opportunity to check the property out. This is a good time to bring someone along that has knowledge of the type of property going up for auction. Take some pictures, make some notes, and be prepared when auction day arrives.

What about price? What are you willing to pay? What are you qualified to pay? These are questions that MUST to be answered BEFORE auction day. Be sure you are pre-qualified for a mortgage that is, at minimum, your maximum bid at the auction. Knowing your maximum bid and having a pre-qualified mortgage for at least that amount beforehand will allow you some comfort in knowing you have done what needed to be done for you to purchase the property being offered.

In next month’s column, I will cover the final step on your way to being fully prepared for your next AUCTION.

This column is sponsored by Donald Kirkland and Higgenbotham Auctioneers. Get more details online about our interesting properties at www.higgenbotham.com, and then click on “upcoming auctions.” Give me a call if you have a property to sell at (863) 607-7877, or email donald@higgenbotham.com.

BIO: Donald Kirkland (AU 1803 AB 158) is a third generation Floridian, from Medulla (South Lakeland) and admitted “Florida Cracker.” He has worked at Higgenbotham Auctioneers since 1993. Donald enjoys the agriculture community spirit, 4-H, FHA, FFA. Donald is a certified and licensed auctioneer and real estate associate.