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Article in Auction Strategy

The Benefits Of Buying Real Estate At Auction

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Unleash the untapped potential of auctions in your quest for real estate by grabbing the opportunity to discover what you’re seeking at or below fair market value.

The interest rate spikes have made borrowing money more costly, theoretically forcing real estate prices to come down by limiting market demand. Usually, this would mean that real estate deals would readily be available to buyers, but this has not been the case in the residential domain. Inventory is also low since owners were able to borrow at a low rate and find no reason to assume a new loan at double the rate. Hence, buyers, especially investors, are paying above market to secure deals to keep their businesses going. However, auctions allow buyers to find properties without paying a premium. Here are some of the reasons why.

One of the primary benefits of buying at auction is pricing. The auction provides competitive bidding resulting in the property being sold at a fair market value. Based on the situation and nature of the sale, the price may be more favorable than other acquisition venues.

Another upside to buying real estate at auction is the transparency of the process. Unlike traditional real estate sales, auctions are conducted in a public manner. This means all bidders have equal access to information about the property and an equal opportunity to purchase. This transparency provides peace of mind to buyers concerned about the transaction’s fairness.

In addition to better pricing and transparency, auctions allow for a much quicker transaction. Auctions have a set date and time, allowing for the completion of the sale within a finite period. This efficiency can be helpful to buyers who need to move quickly or don’t want to wait for an extended period to complete a real estate transaction.

Auctions also provide an opportunity to purchase unique properties that may not fit within traditional residential or commercial real estate channels. Some examples include historical homes, large parcels of land, non-conforming properties, mixed-use properties, properties needing renovation, churches, and many more. Although not for everyone, these properties are for people looking for something out of the ordinary.

Real estate auctions can be an excellent way to find exactly what you are looking for at a fair price. The competitive pricing, transparent and quick transaction, and uniqueness of the properties are just a few benefits that auctions have to offer. If you are in the market for a new property, consider attending a real estate auction to find your next home or investment property. You can also find a link here to our Buyer Q&As for additional details on buying real estate at auction.

Rei Osmani

March 27, 2023