Watching real estate auctions happen in real life or on-screen is pretty entertaining. However, we cannot say the same if you are participating in the auction yourself. When you are in the middle of the crossfire, auctions can get intimidating and cause a lot of pressure. The primary goal of a real estate auction is to sell a specific house or any kind of property at the highest price possible.
Some properties sold at auctions sell for prices below market value. However, some sell at even higher prices because some people will spend the most money just to get their hands on a piece of property they will do anything to get. If you want to have the best odds and an increased chance of purchasing a property you really like at auctions—a real estate buyers agent or buyers advocate can help.
How Can a Real Estate Buyers Agent Help?
An experienced home buyers agent can help you maximize the value of the property you can bid on and win in an auction—whether you are buying a new home or an investment property. But that is not all they can do. Here are 5 reasons why you should have a buyers agent represent you at an auction:
- Buyers agents are experienced. A buyers agent has tons of experience bidding at auctions. If it is your first auction, you can avoid being another experienced bidder’s prey with a buyers agent—and have a higher chance of getting your hands on the property you really want.
- Buyers agents know the real value of a property. Because buyers agents know the real market value of a property for sale, you can avoid spending too much on something with little value, and end up paying less for more value on a different property.
- Buyers agents know what paperwork you need to enter auctions. Entering real estate auctions is not as simple as bidding on items on eBay. Before an auction, you will need to register with a selling agent to obtain a bidder’s number. To avoid the hassle of tons of paperwork and other requirements, a buyers agent can help you with the process.
- Buyers agents can bid for you and negotiate at auctions. As we mentioned before, bidding at an auction can be very intimidating and emotionally daunting. That said, you can avoid all the stress if you hire a buyers agent to bid on your behalf—especially if the stakes are high.
- Buyers agents can negotiate on your behalf if a property in an auction has passed in. Some auctions require a price quote on some properties, and if the property does not reach the seller’s reserve price it will be considered as passed in. Negotiating for passed-in properties can be just as stressful as bidding in an auction but don’t worry. A buyers agent can help you negotiate with the seller—increasing your chances of getting your hands on the property at a price you are willing to pay.