Twin Cities Property Auctions
Auction sales of homes, land, and various properties have long been used as an alternative to traditional buying. Most people have seen advertisements for real estate auctions and are intrigued by the low advertised prices. At our trusted Minnesota REMAX Realty team, we often get questions about purchasing homes at auction from individual home sellers and investors. As investors themselves, our experienced Realtors and agents have purchased homes at auction as investments.
We understand the market thoroughly, and can assist clients through the process with advice, representation, and other services. If real estate auctions interest you, here is some information you need to know.
Types of Minnesota Properties Commonly Sold at Auction
- Residential Properties – Developers often use auction sales to sell properties in new developments, often as a way of building publicity and to move unsold homes in the development. Individual properties are also sometimes sold by their owners.
- REO & Foreclosed Properties – These are the most common residential properties sold. From Sheriff’s auctions to those arranged by banks and other lenders, they appeal to investors and some individual buyers who are looking for bargain prices on homes that can be rehabilitated for rentals or for future sales.
- Land & Farm Auctions – Most commonly held in rural areas of Minnesota, action sales of farms and vacant land are a tried-and-true way of acquiring vacant land and even working farms. Prospective buyers seeking land for hunting and recreation, along with hobby farms and other properties, find these sales a rich source of potential purchases.
Great Opportunities or Risky Business
Real estate auctions can be a source of genuine bargains, but present a number of risks for inexperienced buyers. These sales are fast-moving events in most cases, and can be intimidating. Inexperienced buyers can get caught up in the process and end up making costly mistakes by overbidding on properties. Here are some tips that can help buyers avoid auction pitfalls:
- Inspect Properties Carefully – Prior to the auction date, open houses at properties to be sold are available and inspections can be arranged by appointment. Potential buyers should inspect each property of interest thoroughly. Never bid on a property you have not inspected.
- Get Familiar with the Procedure – If you’re not familiar with fast-paced auctions, attend a few of them as a spectator to acquaint yourself with the process. You’ll learn the ropes, so you’ll be prepared when you attend your first one as a bidder.
- Understand the Requirements – Read all terms and conditions for each auction carefully and ask questions. Understand the bid deposit, financing, buyer’s premiums, closing requirements and all purchase requirements before attending the event.
- Secure Financing in Advance – Depending on the type of auction, you will be required to provide a cashiers check for the required deposit or even the full amount of the winning bid if yours is the winning bid. If you cannot pay for the property within the closing period, you will forfeit your deposit, so make sure you’re covered. Also, remember that most real estate auctions have buyer’s premiums the winner must pay. That adds to the final cost of a successful bid.
- Set Limits & Stick to Them – For each property you plan to bid on, set an absolute limit on the amount you will bid. Once you have evaluated the property, set a maximum price you are willing to pay and don’t let anything influence you to bid more than that.
- Bid Carefully & Cautiously – Keep your eagerness in check and hold off on bidding at the beginning. Wait to see how bidding proceeds and bid only after it slows down. Don’t get into bidding wars with other bidders.
Help with Real Estate Auction in Minnesota
Just as you rely on the expertise, experience, and dedication of our agents with home buying and selling, let our team assist you with real estate auction sales. If you’re considering bidding on properties at auction, contact us to talk with a licensed Realtor who has extensive experience. We can assist you in many ways, including assisting you in evaluating a property and representing you at the actual auction. Depending on the type of sales, our fees may be paid by the seller.