What to Expect on Real Estate Auctions

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What to Expect on Real Estate Auctions
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• Auction is definitely one of the most exciting
  ways to buy any real estate in Singaporewhere a
  property is often showcased and is up for grabs
  as soon as the highest bidder remains
  unchallenged by other probable buyers.

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• Whether purchasing a lot, a housing unit, or any
  other real estate for that matter, an auction can
  surely show you some of the best, most
  affordable, trendy, and much desired property in
  the market today.

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• Cherry Tan, a participant in last years
  countrywide property auction in Singapore shared,
  Its such a wonderful experience to be just with
  other buyers and see what options I have today
  when it comes to buying my own abode.

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• While auctions can make you feel skeptical about
  the unit you are eyeing, experts have some
  comforting and assuring words for probable
  buyers, Buying real estate at an auction is one
  way to save thousands of dollars on any type of
  property, from undeveloped land to a luxury
  estate. Real estate auctions save the buyer time
  and expenses in terms of marketing and
  maintenance. For buyers, the competitive spirit
  of an auction can make the process intimidating,
  but knowing what to expect can help you bid with
  confidence, wrote an unnamed writer of
  homeguides.sfgate.com.
• What more to expect on real estate auctions? Here
  are some guides for you.

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This is not a room-closed event

• Contrary to popular belief, real estate auctions
  are not necessarily held on crowded rooms, The
  phrase real estate auction often brings to mind
  the stereotypical image of a small group of
  investors, huddled around an auctioneer on the
  county courthouse steps. And in fact, almost all
  foreclosure auctions are conducted live in front
  of (or in a room inside of) county courthouses.
  Many states only require a publicly accessible
  space, like a hotel ballrooms or room in a
  convention centre.

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• In some of these larger venues, hundreds of
  foreclosure properties might be auctioned on a
  single dayLive foreclosure auctions are free to
  attend and open to the public to ensure that a
  home being foreclosed upon receives the highest
  possible recovery for the bank or lender and the
  smallest deficiency for the borrower. Anyone can
  attend however, if you want to bid, youll need
  to register. In almost all cases, youll have to
  show that youre in possession of sufficient
  funds to pay for the property in full. (There are
  a few states that allow an auction day," said
  editor Cynthia Badiey of auction.com blog in her
  article titled Buying Investment Real Estate at
  Auction The Basics.

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What to prepare

• You should never go to an auction without being
  armed of its know-hows or you will end up
  heartbroken for not getting what you desired,
  Potential buyers who attend a real estate
  auction are likely to have spent many hours
  preparing for the day. This process generally
  involves reading the auction guide, which the
  seller makes available by mail or at a local real
  estate office. This guide includes information
  about the property along with the terms of the
  sale. Bidders need to know what they're bidding
  on and what sort of financial obligation they
  will be making if they bid.

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• It's also important for bidders to know the
  starting bid (the price at which the auction
  begins) and the reserve price (a higher price,
  below which the owner is not yet obligated to
  sell the property), said the writer of What to
  Expect at a Real Estate Auction from
  homeguides.sfgate.com.

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An inspection is likely to follow

• Gladly, you will have the chance to scrutinize
  the unit, A real estate auction follows an
  inspection period, during which prospective
  bidders may physically inspect the property. This
  is an important follow-up to the research process
  and gives bidders a chance to check for any
  problems or note the features they think give the
  property value. An inspection on auction day is a
  bidder's last chance to decide against
  participating in the auction, further wrote
  homeguides.sfgate.com.

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Be ready for a bidding war

• If you are a neophyte and do not know how to go
  up against the bidding veterans, never discount
  an experts advice, Its important to take
  notice of your agents advice and recommendations
  throughout the auction campaign, says McGrath
  chief auctioneer Scott Kennedy-Green. On auction
  day, thats even more important. Give careful
  consideration to what the agent recommends
  particularly about the reserve price on the day.

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In case you win

• How do you know you have won and what to do at
  this overwhelming time? When no bidders raise
  their cards to meet the auctioneer's next stated
  price, the last person to bid wins the auction at
  the most recent price. This bidder's number has
  already been recorded by an agent of the real
  estate company.

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• The auctioneer states that the property is sold,
  restates the price and closes the auction. If
  you're the winning bidder, you'll likely be
  approached by an agent of the real estate company
  who will issue you additional paperwork or
  request a cashier's check. The auction guide will
  indicate the amount required for the winning
  bidder's deposit). The final step is to sign a
  purchase agreement. concluded homeguides.sfgate.c
  om.