Can an Agent Help You in an Auction?

If you’re interested in trying to pick up a bargain property at auction, there’s a lot to learn. Auctions can be risky to purchase a property compared to buying a property through a Real Estate Agent.

“An Investor client of mine wanted to purchase an apartment complex that was under auction. He checked the documents on the website. The property price was $2.1M. I requested the real property documents before buying the property and was only given a month to review the original documents. I found out that the fair value of the property was$1.6M.  The half-million I saved my client was a huge multiple of my commission.”

It’s important to be extremely well-educated about the process and about the properties you are interested in bidding on.  Also, just because a property is for sale at auction doesn’t mean that you’ll be able to get it at a good price (or that the property is a good deal at any price – it could be a money pit!).

But if you are savvy, intelligent and motivated investor, property auctions are worth exploring as a way to pick up a home or an investment property at a great price.  Most auctions have a provision allowing you to bring a Real Estate Agent into the transaction and paying at least some of our commission.  Even if the Auction Company does not pay for it, what the agent saves you certainly will – as this example clearly shows.

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