Whether you’re looking to start investing in real estate or searching for your dream home, it’s not always necessary to go through the traditional process of finding a property. Buying a home at auction is an appealing option for many people who are hoping to get a bargain and complete the deal in a quicker timeframe. However, there’s more risk involved in going this route. As such, it’s important to know what to expect and why consult with a reliable real estate attorney to help you navigate the transaction.

A Guide to Buying Property at Auction 

Know More About the Auction 

Every auction is different, so you’ll want to make sure you know what the proper procedure is for participating. Generally, before you can bid on a house, you’ll need to register and provide any financial paperwork that’s required. On the day of the auction, check to see if the status of the listing has changed. There are a variety of reasons an auction could get canceled at the last minute. 

Get Your Finances in Order

Typically, you’ll need to pay for the property in full right after the auction ends should you have the winning bid. This means your finances must be ready to move forward with the transaction.

Most auctions accept cash, cashier’s check, or a bank money order as payment. If the auction allows financing, you’ll have to pre-qualify for a mortgage before bidding.

Learn More About the Home

Auction homes are sold as-is. In turn, you’ll be responsible for any maintenance or repairs that need to be done once you become the owner. Thus, it’s essential to learn as much as you can about the property.

Some houses will have an inspection done, but you won’t be able to take a look inside yourself since they’re usually still occupied. You’ll still want to drive by and view the exterior, as this can be a good indication of how well the inside has been taken care of.

Have a Real Estate Attorney Conduct a Title Search 

One of the biggest risks of buying a house at auction is that you’ll be liable for any liens attached to the property. Fortunately, you can have a real estate attorney perform a title search to determine if this could be an issue. They’ll tell you if there are any claims against the home so you can decide if it’s worth the additional costs. 

If you’re interested in purchasing an auction home, turn to the real estate attorneys at Bernardini Law P.C. for legal guidance. Based in North Andover, MA, they’re available to help you make informed decisions about your investment and provide insight on any red flags you should be aware of. Backed by more than a decade of experience, Attorney Bernardini has extensive knowledge in real estate law and is committed to keeping her clients’ best interests top priority throughout every transaction. Call (978) 794-5525 to schedule a consultation, or visit the firm’s website to learn more about their services.