Real estate auctions often present attractive opportunities for investors and hopeful homeowners looking for properties at discount prices. However, auction purchases also bring their own hazards and pitfalls, potentially causing financial mistakes which could take years to correct. The advice of a skilled real estate attorney can be instrumental in determining whether buying at auction is the right approach.

When Should You Buy at a Real Estate Auction?

If You Can Afford the Risk

Unlike traditional real estate transactions, most auction providers don’t offer potential buyers an opportunity to tour the interior. You also probably won’t be able to conduct a home inspection before closing, which may mean inheriting a property with expensive issues. Because auction properties are sold as is, you should only invest if you have the resources to repair the roof, eliminate pest infestations, and perform any other necessary upgrades.

The Price Is Lower Than Similar Properties

Taking on the risks of an auction property is only financially worthwhile if the price is significantly lower than similar properties on the market. Before the auction, researching the selling price of comparable homes in the area will help you avoid overpaying for a potentially distressed property.

The Title Is Clean

Properties sold at auctions often don’t go through a rigorous title search before the sale, often leaving buyers financially responsible for liens, competing claims, or outstanding tax debts. Before buying at an auction, have an experienced real estate attorney search public records and wills to ensure the title is clear of encumbrances.

Whether you’re buying an investment property or looking for a home for your family, a skilled real estate attorney will protect your interests and ensure the best possible results. The legal team at Bernardini Law P.C. focuses exclusively on helping buyers and sellers throughout the Greater Boston area navigate the complexity of the process. Visit their website for more on their wide range of services or call (978) 794-5525 for a consultation with a leading real estate attorney.