US Minnesota Home Auction review

What’s the scoop here? Any and all real estate infomercials grab my eye. Why? Because, they are trying to sell a lot of real estate quickly. Why would a bank agree to sell through a large public auction? Money.

Real estate auction companies promise big profits to corporate clients. The goal of an auction is to create demand (aka a seller’s market). 

Let me repeat, AN AUCTION’S ATTEMPT IS TO CREATE A SELLERS’ MARKET.

Ask yourself, are WE in a sellers’ market?

What does this mean for you? It means that if you go to the Minneapolis auction you will think everyone sitting next to you in the uncomfortable chairs is bidding on your dream home, that first investment property, your retirement cabin, that attractive land holding, the opportunity in that commercial property, etc. How do you think they pay for those l-o-n-g info commercials? I work with lenders every day. They watch the bottom line very closely.

A margin is made.

I am not saying that a good deal cannot be found at an auction. I just encourage buyers to be well informed, and use discipline at the auction. There are a few simple rules which will help you overpaying at an auction:

1. View the property prior to the auction. Pictures are not always the best representation of a property, and rarely tell the whole story.
2. Have the property inspected prior to the auction if possible to be aware of any defects. If not possible, use an inspection contingency.
3. Pull title prior the home auction. If your title company can pull title prior to the auction you can be aware of any clouds on title, and/or assessments, past due taxes, and past due association fees (if applicable).
4. View city inspection reports. If the city requires an inspection, the inspection should generally be completed prior to the auction. Call or visit the city offices and review the inspection results to be aware of any code violations.
5. Set a pricing strategy and stick to it. The discipline to stick to your pricing strategy may save you thousands. Do not overpay because your adrenaline level is through the roof.

The best thing a buyer can do is to work with an agent who understands the market. Be an informed buyer in Minnesota’s current market, and work with the #1 Re/Max Real Estate Team in Minnesota and the #24 Re/Max Real Estate Team on EARTH for 2008!