One of the best things about auctions is the thrill of trying to edge out other buyers or spot an incredible deal. However, it isn’t always easy to know how to get started. Below are four frequently asked questions about property auctions, so you can enjoy your first bidding experience without any confusion. 

Common Questions About Property Auctions

1. How Do I Register to Bid?

Before bidding in an auction, registration is needed. During registration, you will be asked to read more about the terms and conditions of the bidding process. You will also need to give the auction house some personal information in case they need to reach you in the future, as well as to verify your age and identity.

2. Are Bids Online or In-Person?

Property auctions are conducted both in person and online, depending on the type of event being held. If the auction is online, bidders will have access to photos and descriptions of the property. However, some real estate transactions ask buyers to bid sight-unseen, which means you won’t have the opportunity to view the property beforehand. 

3. Is There a Deposit?

After successfully bidding on a property, some auction houses request a deposit until the sale has been closed. For example, you may be asked to offer a 10% deposit on the property to hold it until you finish taking care of the financing. This deposit is applied to the sales price of the item. 

4. What Is a Buyer’s Premium?

Most real estate auctions also have a buyer’s premium, which helps to pay for the auction services. As such, if the buyer’s premium on a sale is 10%, you should factor this into the final costs of a property. For example, if you bid on a home for $70,000, and the buyer’s premium is 10%, you should expect to pay $77,000 in total. 

If you’re interested in purchasing a property at a great price, check out the real estate auctions we offer at Greenways Real Estate & Auction in Covington, VA. Since our company’s inception more than 60 years ago, we have been committed to helping people streamline the auctions of their properties, equipment, and personal belongings. To learn more about our business, visit us online, and give us a call at (540) 962-1155 to speak with a member of our team today.