Prior to the auction, you need to secure a copy or catalogue of the property lots that will be auctioned at any particular auction house. It may be worthwhile to obtain several catalogues from local auction houses so that you can compare property specifics. If there are any properties that you are interested in, it is important to remember that an offer can be made before the auction. The seller will consider the offer and get back to you if he wants to proceed on that basis. In the event of your offer being accepted, the property will be removed from the auction process and you will be obliged to complete on the purchase.

Once you have the auction catalogues to hand, you should scan them for properties that suit your preference both in terms of price range and the nature of the property. Organize and arrange the properties according to the preferred style and structure of the property. Investigate or scrutinize the description of the property. Check any legal paperwork the auction house may hold for any property you are interested in. If unsure, it may be advisable to seek the guidance of lawyers or experts.

Double check any terms and conditions of the contract governing the schedule of payment. It is extremely important to make sure that you have available funds to purchase any one property in accordance with the terms and conditions of that lot. If you feel that there maybe a need for a mortgage, you will need to arrange this before attending the auction. Otherwise, you will risk losing any deposit you put forward for a property that you are subsequently not able to raise finance for.

On the day of the auction, you need to acquaint yourself with the mechanics of that auction. Usually, there is a need for prior registration if you wish to participate in the bidding. Be sure to take in any identification documents with you. You will not be allowed to bid without proof of ID. You will also need to take in a cheque book or bankers draft for any deposits that may be required.

Never arrive late. This is very important because you will need time to familiarize with the auction room and the mannerisms of the auctioneer. On arrival, always check the list of properties for any changes or alterations. It is not uncommon for properties to be removed from auction proceedings prior to the auction.

If you are to bid, make your bid clear so as to prevent confusion on the part of the auctioneer. Whenever bidding at auction always have your maximum possible bid in mind and dont ever deter from this amount. Your maximum bid will take into account any works that you feel need doing to the property and also any profit levels you need to clear.

If a property fails to sell at auction due to the reservation price not being met, you should consider making a bid directly after the bidding has stopped.

If you are new to the routine of purchasing at auctions it is advised that you go to one or two auctions purely to just sit and watch the process take place so that you know exactly what to expect when you come to bid on a property.

It has been said that you could save up to 40% on a property by buying it at auction. There are however a few unwritten rules that you should abide by when it comes to buying your property at auction. The reason these unwritten rules are advised is because they will make the auction process a lot smoother and will avoid you making decides you don’t want:

? Don’t buy a property before you’ve sold yours i.e. before the completion has happened. This is of course assuming you’re relying on that sale to buy at the auction.

? Don’t buy a property without having had a survey done. Not only will you limit the potential nightmare of building problems but you’ll also have a basis on which to bid, as well as knowing your mortgage limit and how much of a deposit you’ll need.

? Always set a price limit on a property. Juts because someone is bidding higher than you doesn’t mean that the property value has gone up.

If your bid is successful on a property you are legally bound to buy the property and will need to put a down payment deposit there and then of 10% of the property’s price. This brings me to my next point; aspects that you need to bring with you to the auction house. You should take your brochure from the auction house and your personal details as well as the name of your solicitor and their address and contact phone number. Remember it is important that you phone the auction house before setting out to ensure that the property you want to bid on hasn’t already been sold prior to the auction and that it also hasn’t been withdrawn.

Below are some pieces of advice for things you should do before going to the auction house:

? Obtain a brochure from the auction house and read the details thoroughly and identify the properties you are interested in.

? You should arrange a viewing of the lot(s) that you are interested in, viewing arrangements for the property will be listed in the catalogue. It doesn’t matter how many you view as you should view any properties you are interested in.

? Always get legal or professional advice from a solicitor and, in appropriate cases, a chartered surveyor.

? Make financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days.

You should be aware that buying a property at auction is a legal binding commitment that carries the same legal implications as a signed contract.

1. Look at newspaper classifieds, the Yellow Pages and internet search engines. Call nearby real estate agents. Add your name to local auctioneer’s mailing lists.

2. Get a list of properties. Get as much information as possible beforehand from the auctioneer. Visit the properties; auctioneers generally have a preview date. Have any property you’re interested in inspected by a qualified surveyor, if you can afford it. If you can’t, take your most knowledgeable friend with you to have to take a gander at it.

3. Choose your desired property. Get its specifics: size, amenities, how much is owed on it, if anything, and what the opening bid is. Get pre-approved for a mortgage, if needed. Have your financing set up before you bid.

4. Compare the sales prices of similar properties in the area so you have a good idea of what it’s worth. Prices for similar properties within three miles of the site are the most reliable.

5. A deposit may be due on the day of the auction. Some auctions may require bank letters of guarantee, banker’s draft or a cashier’s cheque in order to bid. Upon a successful bid, a deposit may be payable in cash, by certified or cashier’s cheque, or by a personal or business cheque accompanied by a bank’s letter of guarantee. You can’t just turn up, bid and walk away; you’ve got to have cash to hand!

The remaining balance of the winning bid price is due X number days after the auction has closed. No purchase can be contingent upon financing. All purchases are based on the ability to close.

6. Check terms and conditions carefully before bidding. Not all terms are the same for every auction. There is no limit to the number of lots you can buy.

7. Check the auction time, date and venue. Go to the venue one hour before the auction time. You can meet on-site staff, confirm your registration and get any questions answered.

8. Mentally set your maximum bid. Don’t get swept up in the excitement. Stay quiet if there are several people bidding on the same property; your bid will only escalate matters. When most have dropped out and the bidding has slowed down, you step in. You can avoid bidding up your own fee.

9. The first and second properties on the list go for the cheapest price. People are waiting to see what the other fella is doing. A couple of good deals go by before they realise they’d better get cracking. Their timidity could be your chance!

10. Penalties for backing out of a winning bid can be steep, so be sure of what you’re getting into. Contact your lender as soon as possible after the auction to finalise your mortgage.

11. Property bought at auction is ‘sold as seen’, with no warranties, guarantees or disclosures. It’s up to you to check it out beforehand.

12. Listen to the auctioneer before the auction begins. The bidding process should be be explained in detail.

13. Consider the additional costs of buying at auction; the auctioneer’s fee, any liens or taxes owed against the property.

14. Realize that you’re not obliged to buy anything. Walk away and be glad if the deal isn’t right for you.

Auctions are a quick way to expand your real estate portfolio, or get your first house. Many people bidding will be professional. With a bit of research and preparation, you can be too!

To get the best out of them, you need to prepare in advance, here are a few tips to help you on your way:

Look at newspaper classifieds, the Yellow Pages and internet search engines. For more detail go to: www.auction-entrepreneur-kit.com.Call nearby real estate agents. Add your name to local auctioneer’s mailing lists.

Get a list of properties. Get as much information as possible beforehand from the auctioneer. Visit the properties; auctioneers generally have a preview date. Have any property you’re interested in inspected by a qualified surveyor, if you can afford it. If you can’t, take your most knowledgeable friend with you to have to take a gander at it.

Choose your desired property. Get its specifics: size, amenities, how much is owed on it, if anything, and what the opening bid is. Get pre-approved for a mortgage, if needed. Have your financing set up before you bid.

Compare the sales prices of similar properties in the area so you have a good idea of what it’s worth. Prices for similar properties within three miles of the site are the most reliable.

A deposit may be due on the day of the auction. Some auctions may require bank letters of guarantee, banker’s draft or a cashier’s cherub in order to bid. Upon a successful bid, a deposit may be payable in cash, by certified or cashier’s cherub, or by a personal or business cherub accompanied by a bank’s letter of guarantee.

Check terms and conditions carefully before bidding. For more detail go to: www.mining-auction-gold.com.Not all terms are the same for every auction. There is no limit to the number of lots you can buy.

Check the auction time, date and venue. Go to the venue one hour before the auction time. You can meet on-site staff, confirm your registration and get any questions answered.

Mentally set your maximum bid. Don’t get swept up in the excitement. Stay quiet if there are several people bidding on the same property; your bid will only escalate matters. When most have dropped out and the bidding has slowed down, you step in. you can avoid bidding up your own fee.

The first and second properties on the list go for the cheapest price. People are waiting to see what the other fell is doing. A couple of good deals go by before they realize they’d better get cracking. Their timidity could be your chance!

Penalties for backing out of a winning bid can be steep, so be sure of what you’re getting into. Contact your lender as soon as possible after the auction to finalize your mortgage.

Property bought at auction is ‘sold as seen’, with no warranties, guarantees or disclosures. It’s up to you to check it out beforehand.

Listen to the auctioneer before the auction begins. The bidding process should be being explained in detail.

Consider the additional costs of buying at auction; the auctioneer’s fee, any liens or taxes owed against the property.

Realize that you’re not obliged to buy anything. Walk away and be glad if the deal isn’t right for you.

How Do Properties Get to Auction?

Most properties sold at auction in Alabama are there for one of two reasons: either the former owner was unable to keep up on mortgage or loan payments, forcing the bank to foreclose on the property to make up their losses, or the home was repossessed by the government due to a backlog of unpaid taxes.

In either case, the bank or the government is motivated to sell off the real estate as quickly as possible so they can retrieve the money they are owed. Repossessed properties often end up at an Alabama auction, where they can be sold at up to 50% less than their actual market value.

How to Turn Auction Properties into Real Estate Successes

Alabama real estate properties that have been foreclosed by banks or repossessed by the government are often sold at auctions, for bargain prices. But it takes some knowledge and preparation to succeed at buying and selling auction properties. Here are some quick tips:

- Come prepared. Most auctions require immediate payment in cash, so make sure you’re carrying enough money to purchase your real estate investment.

- Get all the information you can. If possible, drive by any properties you’re interested in and try to get a feel for the area, the condition of the house, and anything else you can learn. Neighbors, and sometimes even the previous owner of the home, can be a valuable source of information. Make sure to attend any scheduled open houses.

- Know the market. Before you arrive at the auction and begin perusing the listed properties, it’s a good idea to know the relative value of homes in different parts of the city, making it easier to recognize the best bargains.

- Know the laws. Familiarize yourself with Alabama foreclosure laws so you understand the legal implications of buying and selling these properties. An Alabama real estate lawyer can provide guidance.

There is a huge potential to make a significant return on investment in foreclosed property. With the proper preparation and careful examination of the property you plan to purchase, you’ll be more likely to achieve success and higher profit margins.