Real estate auctions have become one of the best ways to purchase investment property. Single and multifamily properties are readily available in most areas for purchase. Investors must make decisions on which properties are most likely to provide them with the profit they want. Staying up to date on real estate auctions news and trends can help this happen.

Real property auctions websites can be bookmarked and used many times. News sources, informational companies and websites providing auctions can keep investors in the know throughout the process. When gathering information, consider these tips:

1. Know that online real estate auctions may not list all property for sale locally.

2. Communicate with lenders, attorneys and real estate agents on intentions to purchase through realty auctions so supportive services are available.

3. Research government and commercial real estate auctions for opportunities for investments.

Action Steps
The best contacts and resources to help you get it done

Visit websites providing complete coverage of all government real estate auctions

Government home auctions are done at the federal, state and local levels. By using websites providing multiple ongoing auctions, investors have a resource to regularly check for auction opportunities. Gather information on local auctions not often advertised online.

I recommend: Gather information on government property auction opportunities listed by websites. USA provides a total listing of government auctions available online. This reporting service provides investors with the latest information on auctions happening throughout the country. Out of state investors benefit the most from this list. Houses Under Fifty Thousand provides a resource of a variety of auction listings. The website receives updates to provide current auction information as it happens.

Use blogs and networks for real estate auction investor tips and resources

Utilize more than real estate auction companies to gather information on the real estate market. Blogs can provide investors with insider tips, resources, auction buying guides and information on the latest market trends. Blogs are a newsworthy resource, especially for local information.

I recommend: Learn about real estate auctions online. Visit blogs that provide current auction listings and information such as GovernmentAuctions. Use The Real Estate Bloggers blog to locate information on auctions, including tips for auctions, investing help and market trends.

Monitor market news about public real estate auction happenings and trends

Learning the news about real estate auctions online can help investors to make decisions. These resources provide investors with information, trends, property values and resources for monitoring what other investors are doing. Auction companies often do not share market trends with investors so out of the area investors rely on news sources to get necessary information.

I recommend: Find information on online auction real estate trends, market news and industry wide changes through trusted news sources. MarketWatch is a trusted real estate industry news provider often covering auction news investors need. EIN News provides the latest information on real estate, including auction news. The organization provides regular, updated news information specifically for real estate professionals.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Being up to date on market trends and news in the real estate industry, especially the auction industry, allows investors to make the best decisions at the auctions. Gather commercial real estate property auction information about the location, the property and what other investors are doing on a regular basis. The more complete the picture is, the better the decision can be for investors.

Real estate auctions are the fastest growing category in the auction industry. Whether you want to buy or sell real property, auctions can be the way to go. For sellers, real estate auctions can shorten the selling cycle, which results in savings in terms of interest expenses, property taxes, maintenance costs and insurance costs. In addition, with a real estate auction, you sell your property on a specific day, which allows you to plan accordingly for the future.

Real estate auctions benefit buyers, too. Sellers are often motivated, which translates to lower purchase prices. And since the terms of sale are set in advance, real estate auctions let buyers avoid long drawn-out negotiations.

Real estate auctions can be one of three types:

1. When a real estate auction is a “reserve auction”, it means the seller reserves the right to reject or accept any bid.
2. Real estate auctions that are “absolute auctions” mean a property will be sold to the highest bidder regardless of the bid.
3. In realty auctions that are “minimum bid auctions”, bidding starts at a specified minimum bid and is sold to the highest bidder above that price.

Action Steps
The best contacts and resources to help you get it done

Search for real estate auctions online

It's easy to find real property auctions in your area using online resources.

I recommend: The NAA Real Estate Auctions online search function lets you search for auctions nationwide by area or by type: commercial, residential, timeshare, land, general or farm.

Government real estate auctions

Every year, millions of dollars worth of property is seized by government agencies, such as law enforcement agencies. These assets are typically sold via real property auctions, which often include real estate.

I recommend: For a listing of government real estate auctions in your state, check GovernmentAuctions.org. You’ll need to register and pay a nominal fee, but that gives you access to the listings for real estate auctions and a variety of other auctions for a full year. Rick Levin & Associates provides real property auction services for a number of government agencies.

Online real estate auctions

With online auctions, real estate can be purchased or sold without attending an in-person auction.

I recommend: Williams & Williams offers certain properties for sale exclusively through online real estate auctions. RealtyBid.com has sold thousands of residential homes through its online real estate auctions.

Search for real estate auctions on foreclosures

Many financial institutions turn to real estate auctions to sell homes that have fallen into foreclosure. This can be a way for buyers to purchase real estate at below market value.

I recommend: RealtyTrac boasts the largest database of foreclosure properties in the nation, many of which are available via real estate auctions.

High-end real property auctions

Whether you're buying or selling luxury properties, look for real estate auction services that cater to a discerning clientele.

I recommend: The Redfield Group, J.P. King Auction Company, Grand Estates Auction Company and Christenson-Elms Auction Group specialize in high-end properties in their real estate auctions.

Commercial real estate auctions

For commercial real estate, auctions should be handled by firms with expertise in commercial properties.

I recommend: Express Real Estate Auction Services and PropertyAuction.com handle commercial real estate auctions in addition to residential auctions. Thomas Industries specializes in industrial and commercial real estate auctions in addition to machinery auctions and other industrial real property auctions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Real estate agents, brokers, corporations, private individuals, appraisers, attorneys, government agencies and financial institutions are known to use real estate auction services.
• •  Real estate auctions often require upfront deposits, but some offer free bidding.
• •  With online auctions, real estate can be bid on at any time day or night.
• •  Real property auctions should include property information, such as maps, surveys, tax requirements and spec sheets.
• •  When buying through real estate auctions online, you may not have a chance to view the property before making a binding bid.

Real estate auctions allow investors to purchase property inexpensively. Knowing where the auctions are and how to sign up is only the start. Investors need to have the tools and resources to make the best decision on these properties, especially with the number of properties available.

Real property auctions provide investors with only basic property information on the properties for sale. Investors must dig deeper to learn the affordability and any potential problems prior to investing. When considering investing, keep these things in mind:

1. Get loan prequalification prior to attending a realty auction to speed up the purchase process.

2. Invest time in real estate auction research independent of what is available from the auction company.

3. Consider non-local opportunities by using online real estate auctions and managing through property managers.

Action Steps
The best contacts and resources to help you get it done

Retain a qualified attorney prior to any public real estate auction

Real estate auctions online or offline require the assistance of legal representation. An attorney specializing in real estate transactions can assist an investor with title searches, property record searches and contract negotiations prior to the auction. This information is available through public records. The attorney can help you in making the most of real estate auctions and may be able to locate information necessary on the property to make a wise financial decision.

I recommend: RealEstateLawyers offers a comprehensive list of attorneys and resources for investors. The National Association of Realtors can help investors find an attorney.

Monitor local foreclosures for commercial real estate auctions

Many real estate auctions online are from commercial banks and private lenders hoping to sell property quickly. These may not be advertised as heavily. Keeping tabs on foreclosures happening in the local area can help investors find potentially valuable properties heading into auctions.

I recommend: Use online auction real estate listings and services and other foreclosure services to find potential auction properties before other investors purchase them. Foreclosure listings are public information but difficult to find. News organizations such as MSN Real Estate monitor local foreclosures and offer foreclosure property listings. RealtyTrac advertises foreclosure properties for commercial banks and private lenders.

Get pre-appraisal assistance for government real estate auctions

Prior to investing in a government property auction, investors must ensure that the value of the property is high enough for resale benefit. If the property is not valued high enough, the investment may be a poor one. Networking with local appraisers and property valuing websites can assist an investor in finding quality real estate in which to invest.

I recommend: Gather information on government home auctions prior to investment. Network with a local appraiser to assist in the valuation of the property. The American Society of Appraisers provides a local research tool to find appraisers nationally. The forum there is a good place to find interested appraisers to work with. Use Zillow to get an approximate property value. There is no charge for this preliminary tool for estimating the resale value of property in auction.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A government and commercial real estate property auction is an ideal way to find affordable properties for sale. By using local research tools, investors can ensure they are making the right investment decision. Local libraries can provide an insight into the property's history, while the public records department at county offices may provide a transaction history.

Real estate auctions are one of the best methods for purchasing real estate. Auctions often sell property to the highest bidder, regardless of the property's value. The terminology can be confusing. There are several types of auctions including tax lien sales, tax deed sales and seized real estate auctions.

Action Steps
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Auction with reserve

An auction with reserve is a type of auction in which a seller, or an agent working on the seller's behalf, has the right to accept or decline all bids.

I recommend: Visit the Kentucky Board of Auctioneers to learn more about auction with reserve.

Buyer premium

A buyer premium is an additional charge placed on the bid amount. For example, a 10% buyer premium may be added in a real estate auction. The buyer of a property will pay the winning bid plus 10% of the bid's value. The buyer premium is used to pay for the auction house. This information should be provided ahead of time.

I recommend: Visit the Auction Associates of United Realty Group to learn more about the buyer premium.

Accredited Auctioneer Real Estate (AARE)

Accredited Auctioneer Real Estate (AARE) is a designation given to those who have met the educational requirements of the National Auctioneers Association. These professionals often preside over real estate auctions.

I recommend: Visit the National Auctioneers Association to find out more about AARE.

Tax lien sale

A tax lien sale does not give the lien buyer any property ownership. It gives the buyer of the lien the right to claim funds on the property at a higher level of priority over mortgages or other liens. The lien is purchased at auction and is only satisfied when the property owner makes payment to settle the lien. If this does not happen, the lien holder may apply for ownership of the property.

I recommend: Visit TaxSaleLists.com to learn more about tax lien sales.

Tax deed sale

A tax deed sale is another type of real estate auction where the property is being sold because of nonpayment of real estate taxes to the government. In this case, the buyer owns the property at the time of the sale.

I recommend: Visit Foreclosure.com to learn more about tax deed sales.

Seized real estate

Seized real estate sales and auctions occur when government entities, such as the Internal Revenue Service, seize property due to a failed payment or criminal activity.

I recommend: Visit the U.S. Department of the Treasury to learn more about seized real estate and to find government real estate auctions.