Are you looking to purchase land at an upcoming land auction, but you don't know what to expect? Here are some tips for going to a land auction.
Know Your Budget
Much like any time you are making a big purchase at an auction, it's important to go in with a budget in mind. You do not want to end up spending more money than you intended simply because you didn't think ahead and didn't know how much you were willing to spend to get a winning bid.
Know The Land Restrictions
It's very important to read about the restrictions on the land that you are bidding on so that you know exactly what you would be getting. If you are looking to build a home on the property, you want to make sure that it is zoned for residential use. If you want hunting property you must make sure that the land is zoned for recreational use.
There may also be restrictions that are not specifically mentioned but are caused by the terrain of the land. Soil conditions and elevation can make it difficult to build on the land.
Know The Order Of The Auctions
You'll want to look at the lands that will be auctioned and understand the order they will appear during the auction. You can then prioritize the land that you want to make bids on, and use that information to know which ones are important and which ones to ignore. If you go into the auction blind, you may end up bidding and winning on a less desirable plot of land only for something better and more desirable to show up later. With that in mind, it is common for auctions to display the most expensive and desirable properties first.
Know How Pricing And Buying Works
You will want to familiarize yourself with how the auction will price the land and how it works if you have the winning bid, since there may be differences between options. It is common for land to be auctioned off per acre, and you are essentially bidding on how much you are willing to spend per acre for the land. However, you may not be required to buy all of the land if you win a bid. Winning may allow you to buy as many acres of the land at the price of the winning bid. You can then decide to take all of the acres or only some of them. Then the rest of the acres will be auctioned off to other buyers.
Contact a local land auction to learn more.