When you sign up for a real estate auction, you may not have a lot of opportunity to research ahead of time. Sometimes a property will be a last minute listing that you don’t even know about until you get to the auction. If you get to know about it in advance though, there are some things that you can look into that will help you determine if a piece of property is a good investment or not. Here is a guide showing what to research before you buy a property at auction.
See The Property In Person
It is always a good idea to go look at a piece of property before you buy it, even if you cannot look on the inside. This will give you a chance to see what kind of neighborhood it’s in, see what the exterior condition of the building looks like, and potentially look in the windows to determine if you want to buy it or not. If you can clearly see that something has been trashed to the point that it is not worth repairing, you may not want to bid on it at all.
If you cannot go see a piece of real estate in person, you may want to have a business partner go assess it for you, assuming you can trust their judgment. This is a strategy that many real estate investors use because they are so limited on time. If there’s a piece of property on your side of town, you can look at it. Otherwise, send somebody else.
Learn What You Can About The Previous Owner
Some auctions will be more open about this information than others, and sometimes your real estate attorney can find out information for you before you get to an auction. If you can find out what type of business was in the property, what kind of resident was in the property, or anything else along those lines, you may have a better idea of what the property looks like on the inside.
Check Out The Neighborhood And Its Potential
You can tell a lot about a property by the neighborhood it is in. Look over the condition of the surrounding buildings to get a feel for what yours might look like if you purchase it. Do as much research as you can before you go to a real estate auction so you can be an informed buyer. You will make much better investment in the long run if you put in the effort ahead of time.