Robert Mayo – Professional Auctioneer, Auction Educator & Public Speaker

Myth 1 – If I buy a property at auction I will have to produce the total amount of cash on auction day.

Not all auction companies utilize the same terms and conditions, so make sure as a buyer you have a complete understanding of the terms and conditions of the auction.

Most public real estate auctions require a deposit on auction day, and allow 30 days for closing.

The deposit will usually be a flat amount, or a percentage of the total contract price.

Although the majority of the properties that are sold at auction are sold with no contingency, including financing, the 30 days to close allows for most buyers to utilize financing and purchase a property at auction without having to have the entire amount in cash.

This entry was posted on Monday, May 16th, 2011 at 11:10 am and is filed under 10 Myths of Real Estate Auctions, Auction Education, Auction Talk. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.