Buying Real Estate at Auction:

Tips, Truths and Tools

Buying Real Estate at Auction:

Tips, Truths and Tools

2006 Gross Sales Revenue for Real Estate

2006 Gross Sales Revenue for Real Estate

Residential $16.0 Billion

Commercial & Industrial $15.0 Billion

Land & Agricultural $25.3 Billion

Growth in Sales for Real Estate Auctions Since

2003

Growth in Sales for Real Estate Auctions Since

2003

0

5

10

15

20

25

30

35

40

Land Res. C & I

• Land & Agricultural Real Estate –33.0%

• Residential Real Estate – 39.2%

• Commercial & Industrial Real Estate – 27.4%

The Auction AdvantageThe Auction Advantage

1. Quick Turnaround Time.

2. No Negotiation Period.

3. Buyers Know They are Competing Fairly Against Other Buyers.

4. Buyers Determine the Purchase Price.

The Auction AdvantageThe Auction Advantage

5. Purchasing and Closing Dates are Known.

6. Buyers Receive Information on the Property Through a Due Diligence Package.

7. Opportunity for a Bargain.

Types of AuctionsTypes of Auctions

• Absolute – An auction without reserve.

• Minimum Bid – Auctioneer only accepts bids at or above an advertised price.

Types of AuctionsTypes of Auctions

• Reserve – The seller has the right to accept or reject any offer that falls below a confidential reserve price, but must accept any bid higher than the reserve price.

Timely TipsTimely Tips• Inspect the Property

• Familiarize Yourself with the Terms of the Sale

• Pre-Qualify for Financing

• Check into Absentee Bidding

• Plan Your Strategy for Bidding

www.onlyatauction.comwww.onlyatauction.com

•Find an Auction function

•Find an Auctioneer function

•Learn tips about buying and selling at auction

•Read auction success stories

How to Find AuctionsHow to Find Auctions

National Auctioneers Association

National Auctioneers Association

• Committed to Excellence

• Members Abide by a Code of Ethics

• Offers the Accredited Auctioneer Real Estate (AARE) Designation

Buying Real Estate at Auction

Buying Real Estate at Auction