Real Estate Auction 101

[flip_it_fast]

I heard lots of questions asked about real estate auctions here in the flip so I did some research. Hopefully this information will be of help to you.

Can I visit an auctioned property before the auction? Usually the answer is yes. It all depends on the specific auction. You can get more specific information by contacting the company performing the auction.

What is a buyer's premium? This is what some companies charge, usually around 5% and is added on to the final price.

Can someone else bid for me? In most cases this is allowed as long as you have original power of attorney paperwork with you at the time of the auction.

What does buyer's choice mean. This is when a number of properties are being sold together at one auction. They may have "Buyer's Choice" for whomever had the first highest bid. In example, Three properties are being auctioned at the same time. The first highest bidder (person who won) gets to pick which one of the three he/she wants.