Get up to speed on auction buying the quick way. contact us to order your copy of "How to Buy at Auction", Flynn & Co.'s own instructional video that will answer all of your questions about this valuable resource for property investing. Don't miss another deal! For more information on how you can receive "How to Buy at Auction", contact Paul Talkowski
	Buying real estate is one of the biggest investments you will ever make in your life. When purchasing any expensive item, such as a car or even a computer, you will want to do as much research on the product as you can; buying at real estate auction is no different. The key is to do your homework. 1. Where do I find properties going up for auction? Newspapers are the best source to find real estate going to auction. Major newspapers such as the Boston Globe and Boston Herald feature an auction section in their classified pages. Also, check your regional or local classified advertisement sections. Classified ads will provide you with different types of information regarding the auction, such as the date and location of the auction, registration information, some pertinent facts about the property and contact information. It is a good idea to call the auctioning company for details. Many times the auction company will have more property and sale information than can be provided in a small ad. The auction advertisement will provide you with a general description of the property terms of sale that must be met in order to complete the transaction. Terms will include a required deposit that you must pay to register for the sale. Generally, a $2,500, $5,000, $7,500 or $10,000 deposit is required in cash or certified bank check in order to register. Certified bank checks should be made out to yourself so you can redeposit it into your account if you are not the high bidder. The terms will also state the number of days you have the close on the property, generally 21, 30, or 45 days. 2. What will take place at the auction? The day of the sale, in order to register to be a bidder, you must produce your deposit as proof that you are eligible to bid on the property. The auctioneer will take down your name, address and telephone number and provide you with a bidder's packet. In your bidder's packet, you will find the following: 1) A Mortgagees Sale of Real Estate legal notice, the same as the notice published by the auction company in the newspaper, 2) A Memorandum of Sale or Purchase & Sale Agreement to be signed by the high bidder, 3) A Municipal Lien Certificate from the Office of the Collector of Taxes that will state the exact municipal liens owed on the property. Once everyone has registered at the time stated for the sale, the auctioneer will read everything in your bidder's packet, make any additional announcements and open the floor to questions from any bidders. The auctioneer or attorney representing the bank will do their best to answer any questions you might have. After the auctioneer has read all the documents and all bidders have had a chance to ask questions, the auctioneer will commence with the bidding. Unless stated, there is usually no predetermined starting bid. The mortgage holder foreclosing on the property reserves the right to bid at a sale and normally has a minimum figure in mind aimed at protecting his or her interest. If the bids do not exceed that figure, the mortgage holder in essence "buy back" the property. If a bid exceeds the mortgage holder's figure, the property will be sold to a "3rd party" or a registered bidder. If you are the high bidder at the sale, you will be required to sign the Memorandum of Sale stating your bid price. You will also be required to sign over your auction deposit to the attorney or auction company. Your deposit will be held in escrow upon the closing of the sale. You then have the previously stated number of days to close on the sale. After you close on the property, you are the proud owner of real estate purchased at auction. 3. What if I can't close with the stated time? Most banks will work with you if a short extension is needed; however, if you are unable to close on the property, you will jeopardize your deposit. 4. Am I responsible for outstanding municipal liens? Yes, as high bidder you would be responsible for all real estate taxes and water/sewer liens, if any, owed on the property. 5. Will I be able to view the property before the auction? It depends. If property is vacant, the auctioneer will make every attempt to allow a showing before the sale. However, in most foreclosure auctions, access to the property is unavailable. 6. How do I learn more about the house if I'm unable to get inside? Do as much homework on the property as possible. Go to the Town Assessor's office and request a property data card from their files. Call the auction company see if they have any greater detail on the property. Go to Registry of Deeds to view the deed on the property. Though you may not be able to get into the property, generally a property that is well maintained on the outside is also well maintained on the inside. 7. What if someone is occupying the property? As high bidder, you are responsible for all tenancies. Should the eviction process become necessary, consult your attorney. 8. Is the mortgage holder's bid always the same as the amount owed on the property? Not necessarily. Many times a mortgage holder will have an appraisal or opinion of value rendered on the property. Generally, they will discount a certain percentage of that value to attract bidders, thus allowing you to get a great deal on the property. For more information on the auction buying procedure, or to request our "How to Buy at Auction" video, contact Paul Talkowski