WHAT TO WATCH FOR WHEN BUYING AT AUCTION

The following is a list of some of the things to watch for when buying at auction, suggested by several auctioneers and real estate experts:

Watch the local papers for advertisements. Visit the property for which you want to bid several times. Get the brochures. For a new home, look into the builder’s reputation, just as you would if you were buying conventionally. For an existing home, talk to neighbors about community, schools, local services.

Ask questions. When viewing the property talk to sales agents about what is included--kitchen appliances, carpeting, landscaping.

If you are serious about a property, have it inspected by a certified home inspector. Ask to see copies of any inspections--such as the termite inspection--that the auction company may have done in advance. Because properties are usually sold “as is,” thorough inspections will let the prospective buyer know in advance exactly what he is getting into. You do not have the opportunity to make contingency bids at auction.

Review all available legal documents--such as title papers, condo or homeowner association agreements--with a real estate lawyer. Also examine the sales contract used by the auctioneer prior to the auction. Make sure you understand the terms of the sale.

In order to participate in the auction you must register in advance with a cashiers check for a minimal amount set by the auctioneer. If you are successful in your bid, your cashiers check will be used as earnest money and you may need to increase it to make it equal to a 10% down payment. You will have to sign a sales contract that day.

Inquire about financing. Sellers often arrange in advance for special, even discounted financing.

A buyer has to work harder at kicking the tires when buying property at auction than buying conventionally,” said John Rohrer, chief operating officer at R. Thomas Ashley. “The three most important things are to inspect the property, review the documents and to ask about financing.”