On Auction Day

A home auction is unlike other types of auctions and it’s important that you are prepared before arriving. To help you get ready and to start gathering the necessary paperwork and resources needed to bid on a foreclosure or for-bid property, here are some tips from Etch.

Preparing for an Auction

Before bidding on a property there are a number of steps you should take, all of which Etch can help you manage. They include:

• Researching Home Value - Before bidding, research the value of properties in the area, recent sold home prices, and the current market value for a comparable home in the same condition.
• Pre-inspection - If it’s allowed, consider a pre-inspection of the property. Before bidding, ensure it is in good condition and don’t commit to more money than you are willing to spend if major renovations are needed.
• Prequalify for a Maximum Bid - Based on the above research, set a maximum amount you will bid for and then get prequalified for a mortgage that is comparable to that amount.
• Determine the Auction Requirements - Every auction is different, depending on if it is a private enterprise, public auction, or bank auction. Find out what they need from you to be a bidder.

Each of these steps can take time and require careful research and analysis of your options. It’s important that you do extensive research to determine if a property is a good fit for you and take the necessary steps before arriving at the auction so you’re ready to bid.

Bidding on a Home

If you plan on bidding, and are the succesful bidder, have a cheque for 10% ready for payment of the deposit or forewarn the selling agent should you wish to supply less so this can be written into the proposed contract.