Government real estate auctions are the most dynamic methods through which expert real estate investors market their properties. Some high-profile real estate owners sell their property due to unforeseen situations, which in turn becomes a significant advantage, on the buyer’s side.
Due to the higher discount one usually receives compared to the typical real estate market rates, purchasing from government auctions has become the new and upcoming trend in the Canadian real estate realm.
The type of real estate up for auctions includes a concoction of properties ranging from homes, condominiums, farmlands, industrial properties, commercial lands, and of course, private properties.
In this blog post, we will be taking a brief look at the steps you should follow to buy in Canadian Real Estate Auctions.
Let’s dive straight in.
6 Steps to Buying in Canadian Real Estate Auctions
Step 1: Browse through property listings and real estate auction sites
There are several real estate auction websites you may check out to take a look at the different listings across the different provinces. Click here to head over to the official Canadian Government website for auction. This website has all the information you will ever need regarding the various government home, land or any property for sale at auction. It is the most authentic source for such information.
You can further get additional information about the property you wish to purchase by clicking on the property listed, and this also includes contact information of the listing agent.
Other sources for auction you should considered, depending on your province, are banks and real estate auction companies like McDougall, Brzostek, etc.
Step 2: Having a Clear-Cut Idea
Purchasing the property from the auction is a hefty investment.
It would be best if you had a clear-cut goal beforehand on how the property is going to be used.
If you are planning on renting it out, you will need to calculate the money you will spend on renovation and repairs and analyze if the investment is a good venture or not.
Even if it is for personal use, make sure the money you are putting in is worth it.
Step 3: Carrying out Thorough Research
As you are going to be purchasing through Government auction and not through an agent, it is very crucial to carry out thorough research on the property listed.
This research could be the deciding factor on whether the potential property is worth purchasing or not.
Those who are planning to buy the property as an investment do analyze the property on various factors such as the value, location, etc., so that it is sold relatively faster and doesn’t turn into a bad investment.
Step 4: Avoid Bidding Blind-Heartedly
Often at an auction, it may be the property you were waiting for all your life.
But this does not mean you can bid all your money into this. It is advisable to auction with a clear head, and an even clearer heart as this is a substantial investment.
Step 5: Seek a Professional’s Help
An auction is a tedious process where you could potentially lose all your money in minutes if you do not have a clear head. If that’s the case, consider hiring a professional bidder who can save you time and money.
Step 6: Review the Entire Property
Before heading towards the auction, be sure to inspect every nook and corner of your dream property. This will help you analyze which sections would need repairs and approximately calculate how much it may cost. This would be an additional investment, and you could decide whether it fits your wallet or not.