Home Auctions: Doing Due Diligence on an Auction House

If you are planning on trying to make a purchase through a home auction, you will need to make sure that you do your due diligence first. Here are a few things that you will want to consider doing before you place a bid.

Visit the House

One of the first things that you will want to do is visit the property that you plan on bidding on. Many of these auctions will have open houses so that potential bidders can visit the home in advance. You need to do this so that you can check out the condition of the property. Many times, houses that are selling through auction are in disrepair. While there is nothing wrong with having to do a little work, you do not want to take on a project that is more than you can handle. You also might consider hiring a building inspector to go with you to take a look at the property. This way, they can alert you to any serious issues with the property.

Legal Situation

You also need to talk to the entity that is auctioning the house to find out about the legal situation with the property. You do not want to purchase a property that has any liens or encumbrances against it.

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