As you explore your real estate needs, one of the things you think about is how much real estate you can actually afford and how cheap you can get your purchase for. Land auctions might be right for you to get the property you desire without spending a lot of money, but you should make sure this type of real estate endeavor is absolutely right for you before moving forward.
Are land auctions right for you? Use this guide and the help of your real estate agent to assist you.
You have the cash to pay upfront
Like most auctions, land auctions go to the highest bidder, and that bidder will usually pay cash upfront for their purchase or forfeit their win. If you have the cash to pay upfront for a land auction, you can attend an auction yourself or have your real estate agent go on your behalf.
You have no issue with sight unseen bidding
A land auction might be one of those auctions where the most basic of information is given about the property, such as how large the land size is and whether it's intended for residential or commercial use. You may be given the general coordinates of where the land is located, such as the town or county, but not much more than that.
If you're comfortable with sight unseen bidding on real estate, then land auctions might work well for you. Sometimes there is an assigned viewing of the property prior to the auction date, so you can take advantage of this if you want to be more secure with bidding on land auctions in general.
You have the time and money for maintaining the land
Land auctions might include land that has worn-down outbuildings, uncultivated land, fencing that needs to be removed, or even destroyed homes. Do you have the time and money to invest in land auctions once you buy the properties so you can make them inhabitable? If you do, then these real estate investments can work well for you. Keep in mind the cheaper the land auction begins, the higher it can be bid up to, and the more work it might need in the end, especially if the land is quite large in acre size.
Your real estate agent can help you get started in real estate auctions so you can confidently bid as you see fit. The sooner you start looking land auctions up, the sooner you can prepare for bidding on property you're interested in.