Real Estate Auctions

On Monday, I went to the REDC Real Estate Auction in Palm Springs.  It felt like it was 200 degrees outside... it was probably closer to 110 or so.  I had two clients that I was representing so it was alot of fun.  They both were the highest bidders on the properties that they wanted.  I really hope the sellers accept their bids.  The auctions are so much fun.  But you really do have to be aware of the whole process and make sure you're not paying more for a property just because you get caught up in the excitement.

If you are a broker/agent, make sure you register yourself and your clients online.  Print out the confirmations.  Bring copies of your license and your broker's license.  And make sure you accompany your clients to the auction too!

If you're a buyer, you have to bring a cashier's check for $5,000 (or whatever the auction dictates) to be able to participate in the auction.  You should also bring proof of funds.  Don't forget your identification and personal checks.  Make sure you take a look at all the properties you plan on bidding on a week before the auction.  If you win a property at the auction, the auctioneers add a premium/fee of 5-10% of the sales price on top of your winning bid price.  Keep that in mind when you are trying to stay at a certain price range.

Auctions are fun and great opportunities if you don't get carried away.  Sometimes you can get better deals through a normal real estate transaction, so don't let the hype and excitement cloud your math skills!

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