From estate sales to foreclosures and commercial sell-offs, real estate has long been a staple of the auction industry. While real estate investors tend to use the auction market to find hidden value, a growing number of homeowners are also using auctions as a primary sales method. For some homeowners or agents, auctions can be a useful tool to attract additional attention and expedite sales, bypassing a lengthy listing marketing and negotiation process. And for distressed properties, such as Government foreclosures, auctions are the primary method used to return as much of the original investment as possible to various lienholders.
Types of real estate you can find at auction include:
Commercial properties (everything from warehouses to restaurants to golf courses)
Condominiums and apartments (both single units and buildings)
Farmland and equipment
Single family and multifamily homes
Whether you’re a longtime investor or a first-time buyer, make sure to do your research when investigating real estate auctions. Different markets will have different real estate values, and the more you know about a potential property, the better informed your bidding strategy will be. Many properties are sold “as is”, so it’s important to factor in any renovations or improvements that might be needed into the final price.