Purchasing property at auction can be daunting for a lot of people, especially if they’ve never even been to an auction before. eHow has a great article, with step by step instructions, on purchasing property at auction. Some tips from the article include:

You usually have to have the money available to purchase the property at the time of purchase. This might mean you need to be approved for a loan already, or that you actually have to have the money in the bank. Check before attending so you know what the financial requirements are.

If there are a bunch of properties being auctioned at the same time, the first couple on the list generally sell the cheapest. People usually wait to see what everyone else is going to do before they bid, and people generally don’t start really bidding until a couple of good deals have gone by.

Also remember that most auctions are sold on an “as is” basis. This means that you may not be able to get a home inspection prior to the auction, and an inspection after the fact won’t provide grounds for backing out of the sale. Make sure that you consider all of the potentially hidden costs such as the auctioneer’s fee, taxes owed against the property, any kind of “buyer’s premium” or any other similar fee. Check with the auctioneer about these fees prior to the auction and ask for full disclosure of any and all fees and expenses that could occur after the auction.

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