Las Vegas Real Estate Auctions
Everyone in the housing market these days is looking for a “steal.” Currently the number of foreclosures in Las Vegas is among the highest in the nation, and foreclosed inventory has driven down prices in the Las Vegas Valley substantially. Investors are returning to the city to pick up great deals and benefit from the strong local rental market, while first time buyers are taking advantage of affordable housing.
But around the country purchasers are finding that buying property at an auction is not an easy process. There is no standardized format for purchasing, and banks and auction houses are selling these properties “as is, where is.” So “buyer beware” is certainly applicable.
Las Vegas Auction Procedure
Auction properties will include every type of Las Vegas real estate, from small condos to single family homes to luxury high rise foreclosures. The first step is to obtain a catalog of the properties to be auctioned. Prior to the auction date there will be several "open houses" scheduled to allow potential buyers to view properties being offered for sale. Keep in mind that while it is possible to make a thorough visual inspection during an open house, a full home inspection is not possible. (Again "buyer beware.")
In addition to open houses, early viewings and pre auction bidding are available through our auction real estate consultants and homes can actually be purchased prior to the auction date. (That is why many properties listed in the auction catalog are not available by the day of the auction.) You should only choose an agent that is thoroughly familiar with the auction process as it is quite different than a normal real estate transaction. Auction properties do NOT list prices, and it takes weeks of research to come up with appropriate bid amounts for all properties being offered.
The day of the auction, prospective bidders will be required to register a couple of hours prior to the sale. Registrants will be required to show identification (driver's license or passport), a cashier's check which will be cashed and become non-refundable if a property is purchased, and proof of financing or proof of funds to make a cash purchase.
Next registrants go the auction sale room. Properties are auctioned off in a pre-determined order. Successful bidders then move on to the contract room where they sign a purchase agreement and tender their cashier's checks which become non-refundable.
One thing to keep in mind on auction properties is that there is a 5% buyer’s premium that will be added to the winning bid amount. A typical Vegas home that sells for $150K will actually cost the buyer $150,000 plus the $7500 buyer’s premium in addition to normal buyer closing costs. Offers cannot be made with any kind of contingencies, including inspections, appraisal or financing. Escrows must close within 30 to 45 days. Auction properties can be financed as long as the lender can close within the appropriate time period and as long as the property is in good (financeable) condition.
There is NO cost to the buyer to have his/her own agent representation at an auction. Since the auction house only looks at the highest bid, whether or not the buyer is representing himself or has an agent, it pays to have an experienced auction agent at your side!
If you are interested in finding out more about Las Vegas auction properties, our auction experts can help. Call us at 702-985-7654, or fill out our simple online contact form below. We look forward to helping you find the perfect property!
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