I’ve bought and sold a few previous residences, so I’m no stranger to buying in general. However, the auction listing states I have to pay 10% within 48 hours of the auction close, with the remainder due at closing. I figure the 10% is the auction fee and I’ll see typical closing fees at closing… but am I screwed when it comes to inspections? The farm has a house (well & septic), some outbuildings, and approx 30 tillable acres. Should I get my own agent?
Get a lawyer. With an auction, you take on substantial risks; there could be liens or other title issues. You generally buy the property as is, with no room for negotiation based on inspections after you win the bid.
If you ‘win’ the auction, the place is yours. Just be prepared for that.
Interested buyers can usually get inspections in advance of the auction.
Farm properties are often sold at auction. Farmers typically care more about yields and machine sheds than the house.
Read the auction terms carefully. Most auction companies allow inspections up until the auction day. The 10% is likely a buyer’s premium for the auction house. You need to dig into the terms of the auction before you get serious about this.
Getting an agent won’t change the auction terms; those are usually set and posted.
An agent can’t help with an auction unless you’re paying them out of pocket for due diligence before bidding. Inspections are typically done before the auction, not after. Also, in some states, buying at auction can mean taking on unknown liens or even purchasing the debt.