So you’ve been watching all the real estate shows on television and you’re ready to head to the auction to buy your first property. While I must admit that Georgia live auctions are extremely exciting, you need to be prepared and informed before making a purchase.
Hundreds of foreclosure properties in Georgia go up for auction every first Tuesday of the month (aka, Super Tuesday). Here’s what you need to know to meet your real estate goals.
My advice is always to do your due diligence (gathering as much information as possible about the property and the auction process) before showing up on auction day. Also, try to attend a Breakfast Briefing prior to the auction for tips on everything from researching properties to gathering due diligence information.
THINGS TO KNOW:
- The properties are available to view online at Auction.com about 2 to 3 weeks prior to the auction. There is also an Auction.com app available for Apple and Android users.
- The properties are often occupied, so you are limited to a visual exterior inspection or drive-by of the property. Please be sure not to disturb the occupant.
- Each property has a property details page (PDP), where you may find:
A) property photos
B) title information
C) property information report
D) estimated lender’s max bid
E) after repair value (when applicable)
F) event details, such as the address of the venue and the time the auctions begin
G) The “save asset” button, which is indicated by a star on the upper left-hand corner of the property. By clicking this you will receive updates about the property, such as when it is cleared for sale, opening bid information and what the property sells for once it is sold to a third-party. - It is advisable to have a real estate professional, or if you are knowledgeable in this area, do a comparative market analysis on the subject property. Take into account possible costs, such as for eviction and repair. Keep in mind your exit strategy, such as whether you will fix and flip or buy and hold.
- Run a title search on the property so that you’re aware of any liens or judgments. Foreclosures are sold “as is,” which means those obligations become the responsibility of the new owner. (Check with a title attorney for more detailed information on what liens survive the foreclosure process.)
- Payment is due in full at the time you win the property. Forms of payment are cash or certified funds. I recommend certified funds made payable to yourself in various denominations. This lets you get as close to the winning bid amount as possible and any overage can be deposited back into your bank account. Any cash tendered totaling $10,000 or more requires a form 8300 for IRS purposes.
- You’ve done your research on the property and it’s time to head to the courthouse. Be sure to check that pending properties have cleared to auction before heading to the auction.
AUCTION DAY
1. If attending an auction on the courthouse steps, bring snacks, water and a chair, as auctions in some of our higher volume counties could last for several hours. Bidding starts at 10am and ends no later than 4pm.
2. Once you’re on site you’ll see the friendly faces of the Auction.com staff wearing bright green polos. In our larger counties, our Bidder Services staff (wearing black polos) is prepared to answer every auction question you have. A list of the properties going to sale and auction terms and conditions are available for your review.
3. You will register to bid and receive your bidder number.
4. Position yourself so you and the auctioneer can see and hear each other.
IT’S GO TIME!
The auctioneer will read the notice of sale and then announce the opening bid set by the creditor. Stay focused and be sure to speak loudly when bidding. It’s possible that after a short rally you could be announced as the winning bidder. Congratulations! You did it.
A contract writer will greet you and gather your government-issued ID and funds prior to completing the certificate of sale. You’ll then wait for the deed to be mailed to you and negotiate the exit of the occupants (if applicable).
For more information about Georgia auctions, visit www.auction.com/superga.
Good luck and Happy Bidding!
The information in this blog post is being provided for informational purposes only and not for the purpose of providing legal or real estate investment advice, and no liability is assumed by Auction.com (or Ten-X, LLC) with respect to such information.
This article was originally published on Auction.com.