When buyers bid on Homes For Auction in Ponca City Oklahoma, they are usually hoping to get a bargain price on a property. Houses are almost always auctioned at a lower price than they would fetch through a traditional sale, but buyers also have to assume more risk. The following are some tips for purchasing a house at auction.
Understand How Auctions Work
Buyers should know that houses are usually sold at auction for two reasons: a bank or lender auctions a home in a foreclosure, and a local sheriff auctions a home when they owners have failed to pay property taxes. Auctions can take place at any location or in any format the auctioneer chooses, including online. In some auctions, the owner of the home is free to reject the highest bid while in other auctions, the highest bidder automatically wins the auction. It’s important to clarify the rules of a particular auction before making a bid.
Research The Property As Thoroughly As Possible
Buyers must also understand that homes at auctions are always sold “as-is,” so buyers must do some research in order to know what they’re getting into. This includes studying any and all due diligence documentation provided before the auction and visiting the home if possible. It will most likely be impossible to enter the house unless the seller has scheduled an open house. However, buyers can and should drive by to get a look at the property and the neighborhood.
Be Prepared To Close Quickly
Auctioned homes typically close much faster than homes sold in a traditional sale. Buyers need to be ready with their financing and their deposit (typically 5% of the sale price) on the day of the auction, and they need to be prepared to close within 30 to 40 days. For many buyers, the quick closing is one of the benefits of buying a home at auction.
Buyers who understand real estate and know how to do their due diligence can often find great prices on Homes For Auction in Ponca City Oklahoma. To learn more about how the process works and how to find good properties, contact Wiggins Auctioneers LLC. You can also follow them on Twitter.
