Buying Land at Auction
How to Buy Land at Auction
Buying land at auction is a great way of securing a purchase. Once a bid is acknowledged, exchanging contracts will occur on the sale date. At this point, the seller can’t change their mind. The bidder is legally bound to pay the agreed cost, completing the land purchase.
An appealing fact about buying land at an auction is that the properties are suggested as an authentic way to determine fair market value, mainly when in need of refurbishing, repairing, or recouping a debt owed to a financial institute.
Like with buying a home, numerous matters necessitate in-depth research to make an informed decision before buying land. Here is some advice on how to go through the process smoothly, preparing you for how land auctions work and what you should expect.
Get a Land Agent or Land Broker
If this is your first time buying land at an auction, contact a real estate agent to ensure you understand the process. If you have the winning bid, you’ll have to get a land agent or land broker to prepare the closing documents. This professional will help transfer land ownership after the sale is completed.
Locating Land to Buy
The first step is locating land to purchase. Search for upcoming auctions and pick dates that will let you do your due diligence and research the viability of the land you want.
Once you pick your dates, look through the open lots and copy all the pertinent information to appraise before determining whether you want to pursue this land choice. After deciding on your top options, make plans to view them in person. You can also check your land choices on Google Maps to view clearer photos of nearby buildings and roads.
Attend Auctions Beforehand to Get Comfortable
Attend a few auctions to get comfortable and familiar with the entire process, including the auctioneer, how to bid, etc. Additionally, you might want to make sure you have suitable financing before you attend the auction.
After finding out the cost of the land, work on securing funding for the auction. Some auction places will let you finance through them, many request the money when you win the bid. It’s vital to note that you’ll need to get pre-approved for a mortgage before the auction in case your bid wins. If you can’t get financing, you must pay with cash to complete the purchase.
Discover Land for Sale in Iowa
If you want to learn more about buying land for sale in Iowa at auction, contact us by email, phone, or visit our website. Also, check out our Iowa land listings and Iowa land auctions that include a free farmland evaluation.
