3 Things To Do Before A Land Auction
Just because the land is for sale at an auction doesn't mean that you don't need to do your due diligence. If you want to purchase land at an auction, you want to check out the land, figure out it value, and obtain financing before the auctions.
Check Out the Land
At most land auctions, the list of land is set in advance of the auction. You can get the list of the land that will be sold at the auction. This list is usually provided a few weeks in advance so that potential buyers can research the land and make sure that it is the right fit for them before the auction.
You should check out the land before the auction. You can even get a real estate agent to show you where the land is at and give you a tour of the land. Be sure to check out the legal holdings on the land as well. Go by the local county land office and see what type of use that land is designated for and make sure that this designations fits with your intentions.
Figure Out the Value of the Land
You don't want to bid to much for the land. Work with a real estate agent to appraise the value of the land based on its size, land type, and nearby land for sale. You are going to want to make sure that you have a good understanding of what this type of land would go for on the open market. Knowing what this land would go for on the open market will help you determine when to bid and when to put down your paddle at the auction. You don't want to get so caught up in the bidding process that overpay for the land.
Obtain Financing for the Land
Next, you need to figure out how you will pay for the land. If you have a lot of cash, you could pay for the land with cash. You may want to bring a cashier's check with you to the auction or make sure that your bank is open so that you can access your funds on the day of the auction. If you need financing for the land, you need to obtain the approval before the auction. It can take days or even weeks to get pre-approved for a mortgage, so make sure you have that process completed before the auction. At most auctions, you are required to pay for the land the day you win your bid, so you need to have financing secured beforehand.
If you want to purchase land at an auction, make sure that you check out the land and figure out the value of the land in advance. Also, when you show up to the auction, make sure that you already have cash or financing ready to pay for the land should you win the auction. For more information, contact companies like Nashville Real Estate Auctions.
Share