Land auctions are a great way to bid on property and possibly come away with a deal. Nowadays you can find both live public and online land auctions. Both have their pros and cons. In the article below I will discuss how land auctions work, discuss frequently asked questions, ways to find less frequented auctions, and tips for winning. I will also share my experience with the live public land auctions near me.
Map of Land Auctions Near Me
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What is a Land Auction?
A land auction generally refers to an auction where a plot of land is sold. This is an interesting option for buying land or real estate and generally gives everyone a chance of owning a piece of land. Like any auction, it also gives you the opportunity to snatch a piece of land for a very low price, especially if nobody else at the auction is interested in it.
How Do the Land Auctions Near Me Work?
Land auctions function very similarly to other types of auctions.
- Auctions go through an auctioneer which is typically a professional company that specializes in auctions. A seller may present their land to the auctioneer who will then put it up for auction and take a small cut of the sale for themselves.
- When you attend an auction, you’ll have an opportunity to look through all of the land and properties available for that day.
- When the auction of a property starts, the auctioneer will typically begin with a starting price. Then someone places a bid, the auctioneer will continue to go up in small increments and wait for another person to accept the bid.
- These increments are usually relative to the expected price of the land. This means they can be in hundred or thousand increments.
- Most auctions will require that you prove that you have the finances available to buy a property or land. This is especially true for high-value and high-profile auctions.
- Some auctions offer financing options to help you cover the full cost or part of the cost of the land or property.
This is how a typical land auction will function.
Benefits of a Land Auction
Should you consider buying or selling land at an auction instead of a real estate agent? Here are some things to consider.
Buying
- Everything is priced fairly according to market values.
- The sale process is much faster.
- There are no long negotiation periods.
- You’ll have plenty of information about the property beforehand.
- You can get a fantastic deal if you’re lucky.
If you’re looking to purchase land and are seeking alternate options, then buying land at an auction can be a good option.
Selling
- The sale is immediate which means you can get rid of your land quickly.
- You can often get a competitive price thanks to fierce bidding.
- The sale is completely transparent and you’ll know the fees beforehand.
- You can get high prices for your land from the right buyers.
So if you’re looking to sell a property quickly or believe that there is additional value in your property that someone may appreciate, then selling land at auction is a good option.
Finding Land Auctions Near Me
If you’re interested in attending a land auction then it’s worth looking at local classified ads and newspapers in the area that you are interested in. Alternatively, you may find auctions by searching on the internet. Some auctions can also spread via word of mouth.
There are some cases where an auction may be sponsored by the government. These will likely be advertised at a town center, or they may be listed on your local government’s website. A site I like to check is USA.gov.
Smarter Ways to Find Land Auctions Near Me
One of my best tips is to use Google Events. You can find very local events that may not be well advertised. That means finding properties with less bidding competition. It is an insiders way of finding smaller events, by smaller auction companies. You may find less desirable properties, but you can certainly score some hidden gems. Click here for Google Events – Land Auctions.
Where Does the Land Come From?
Land auctions typically list land that people want to sell. Instead of using an estate agent, they may decide to auction it off because they believe it may be more convenient, or it may be more valuable to the right buyer.
However, some land may be up for auction because it has been repossessed from the previous owner. This might happen because the previous owner had financial troubles, resulting in their land or property being repossessed and then being sold at auction. This may concern some buyers, but the information on a property will likely be available. As such, it’s a good idea to look into the details of a property and why it’s up for auction in the first place.
Are Land Auctions Priced Fairly?
Most land at an auction is given a fair market price. In many cases, the starting bid may be much lower than you’d expect because the auctioning company expects there to be multiple interested buyers. Buying land at an auction also means skipping a length negotiation period which can change the price if you were to buy land or property with other methods.
Are There Fees to Buying or Selling at a Land Auction?
Most auction companies make a profit from the fees they charge for the sale or purchase of an item. Some companies will charge both the buyer and seller a fee, and there may also be reservation fees and additional premiums depending on the service that you’ve chosen.
It’s best to consult each auction company to see what fees they charge for buying or selling land.
Do You Just Show Up and Bid?
To actively bid at a land auction, you will need to register. This will require a photo ID, possibly proof of residence (like a water bill), and proof of your ability to pay (like a bank statement). Since Land is expensive and a winning bid constitutes a legally binding agreement, the auction company needs to have trust that you are who you are and have the money.
Registration rules and requirements can vary by auction company. It is best to consult an auctions website and registration requirements before you show up or try to bid at an event.
Winning Tips for a Land Auction
- Dress the Part: Impressions matter and you can intimidate other bidders.
- Sit Towards Front and Act Like a Pro
- Be Coy – Keep information like how much you can afford all to yourself
- Lower the Reserve: If the reserve hasn’t been met, you can ask the auctioneer to lower it.
- Determine Your Strategy – bid aggressive early or late, you need to read the room
- Ask About the Clearance Rate – This is percentage that shows how many properties an auction has sold during the previous time period. You want to find a rate below 60%. That means low interest from buyers, which equals lower land prices
- Hire a Buyers Agent – This is a sure way to win by getting someone with experience and no emotional attachment to handle the bidding for you.
Land Auctions Near Me Conclusion
There are a lot of benefits to picking up land at an auction. Certainly removing the negotiation factor is a big one. If you end up a low attendance and not well advertised auction you can actual walk away with property below the market value on a no reserve auction. This is what I have learned from the land auctions near me.