Buying at an auction

[Rana Kaleel]

There's an auction coming up this weekend in LA that we are interested in but we have only bought Properties the conventional way and are not familiar with auctions. Besides the logistics of bidding and payment , do you usually go with your agent and who represents you with the deal? The terms state that an agent has to register 48 hours prior to auction and be present at auction to get 50% of commission. If I don't bring an agent is the auction realtor getting the full commission and handling paperwork/escrow for both parties? How does it usually work ? Thanks !

[Nabil Suleiman]

@Rana Kaleel

A majority of the times people go with a few properties in mind they have interest in bidding on, usually listed on the auctioneers' website. ie (auction.com), The website will say what properties they "plan" on auctioning that day, which many times end up not going up for sale. You can also go as a spectator and learn about the process and how things are done without bringing any money or agents with you. They also teach classes to new people that may not feel confident or comfortable with the bidding process, I believe they do those classes once a month/week but they hand out fliers pretty often. 

These are all-cash deals, so you are expected to bring cashiers checks in multiple increments in order to buy these properties. Most paperwork is handled there, escrow in the traditional sense doesn't really exist. 

you are not required to bring an agent but if you want to incorporate them because you trust their opinions/ they are providing you with data you are unable to get yourself then bring her/him along. You will ultimately be representing yourself in this deal, your agent will have no responsibility for your bidding, additionally if you win there are no contingencies for you to get out of it.  

I think that answers most of it. Good luck if you go.