Pre-Auction Checklist for Land Buyers

Auctions comprise a significant percentage of modern real estate transactions. It’s highly likely that many of those who plan to purchase land end up doing so at auction. However, those unfamiliar with the process should be aware of important steps to take prior to auction day. In fact, some things must be completed weeks, if not months, prior to bidding. Take the proper steps to complete the pre-auction checklist.

Don’t wait until the last minute to determine your auction buying strategy. While this isn’t a complete and exhaustive outline, check out the auction planning checklist below.

Editor’s Note: This is not financial, investment, legal, or real estate advice. Consult with a financial planner, investment specialist, real estate lawyer, and real estate professional before buying or selling real estate.

Attend Practice Auctions

Those new to auctions shouldn’t go into their first one without any experience. That’s a great way to become overwhelmed. Instead, attend “practice” auctions. Don’t actually bid, but certainly see how things go and learn the flow of auction day. This provides experience into the auction process and helps build confidence going into the auction you actually want to attend.

Have Your Team on Standby

Buying land takes a team of professionals. Loans officers, surveyors, title companies, and more — you can’t do this on your own, even if you have the cash to buy land outright. Thus, talk to each important professional long before the auction actually begins. Give them, and yourself, plenty of time to prepare for the big day.

Find the Right Auction for You

Just like every traditional listing isn’t for every person, not every auction is right for every buyer. Scan through the list of upcoming auctions to determine which one is right for your needs. Find the property that checks the most, or even all, of the boxes. Oftentimes, auctions are listed 30, 45, or 60 days in advance of the sale.

Complete Loan Pre-Approval

The loan pre-approval process takes time. In fact, it usually takes at least 30 if not 45 days (sometimes longer). Therefore, because of common timelines, it’s important to complete the loan pre-approval process before you even find the right auction listing.

Execute Financial Prep Work

In addition to consulting important team members, it’s vital to execute all necessary financial prep work. Complete remaining loan applications and other documents. Finalize all necessary documentation for each phase of the real estate process.

Prep Your Cash

So, you’re an all-cash buyer. Congratulations! Prepping your capital for the land transaction takes time as well, especially if pulling funds from multiple sources. Assemble in advance the required funds to complete the purchase so this isn’t being conducted at the last minute.

Make Available Proof of Adequate Funds

Even if borrowing money to buy real estate, it’s highly likely you’ll have to make a down payment. (And even if not required, most financial advisers recommend doing so.) Ensure that enough money is ready for the down payment or complete cash purchase. Prepare bank statements and other necessary financial documents. You’ll need to show proof of adequate funds on the day of the auction.

Prepare the Down Payment

Traditional real estate purchases require earnest money. This is the deposit made to the seller that shows your commitment to the transaction. With auctions, your down payment (10% of the final sale price) is that earnest money.

Understand Tax Liabilities

Real estate transactions tend to come with tax liabilities. Buying land will eventually require property tax payments. That’s something you must plan for. Understand all tax liabilities involved, even from the buyer perspective.

Complete the Title Work

Does it have a clear title? Complete preliminary title work before the auction. At least, consult a title company and inquire about the property. They likely won’t do the complete process, but if you establish a relationship with them, they might at least look into initial, easy-to-check factors.

Study the Property Survey

Do the property lines work for your goals? Are there any boundary issues? Determine these answers by studying the property survey. This can reveal potential issues (for you) with the outlines of each tract going to auction.

Look at the Access Availability

Property access availability is a significant factor. The direction of which you can enter and exit the property, and how many access directions you can ingress and egress from, can greatly impact property value, hunting quality, and more.

Pinpoint Existing and Potential Utilities

Utilities matter, and it’s good practice to pinpoint existing utilities on the property. It’s also prudent to determine where future potential utilities might go. If both sides of the coin work for your intended property usage, it’s a go. If not, you should regroup, determine a fix, or find a different property to bid on.

Examine All Easements

Existing easements can work in your favor, or against you. Sometimes, these allow you to access property that’s landlocked. Other times, others might access through your land to reach theirs. Regardless, easements work both ways. Determine if existing ones are OK with you, or not.

Pull Zoning Reports and Restrictions

Zoning can greatly impact what someone can do with their land. Depending on the zoning designation, and what type of zoning the property is within, it might determine if the land can be used for agriculture, commercial, residential, hunting, and more. Check zoning reports and study for potential restrictions.

Test for Environmental Issues

Test for environmental issues. This includes air, soil, water, and other potential contamination problems. Contact the appropriate professionals to conduct these important preliminary checks.

Study the Landscape via Apps and Maps

You can learn a lot by studying available land-centric apps and maps. Some services are free and others are paid. Access the ones you can, such as onX, and learn as much as possible about the property that’s going to auction, as well as the neighborhood around it.

Walk the Property In Person

When possible, it’s crucial to walk the property in person before the auction takes place. There are some things you can’t know, see, or learn without putting boots on the ground.

Learn the Neighborhood

As alluded to, it’s important to know your neighbors. This can influence how things go on your own property. It’s especially true for hunting, when wildlife typically lives on multiple landowners. Also, perhaps there’s a smelly chicken farm directly upwind, and that won’t work for your scent-sensitive spouse. Whatever the case, learn the neighborhood before buying the land.

Determine Your Max Bid

Don’t wait until the day of auction to gauge what you’re willing to pay. Know how much you’re willing to part with for the land before arriving at auction. Oftentimes, if working with a financial lender, they’ll assist with this process. It’s also good to consult your financial adviser.

Speak with Auction Representatives

Those with questions, concerns, or uncertainties should speak with auction representatives. They can answer any questions you have about the upcoming auction. Benefit from their auction expertise.

Eat a Good Meal

Don’t go to an auction hungry or tired. Be well-rested and with recent nourishment. This will ensure you are in a better state of mind, which is important with such a significant financial decision-making process.

Read the Auction Terms, Conditions, and Other Rules

Read the auction terms, conditions, and other rules. Be completely understanding and aware of all legalities concerning the auction process, and the specific property being sold. In some cases, it might be sold “as-is” with no warranties or special considerations.

Study the Auction Contract

Read the fine print. Send the auction contract to a legal professional. Better yet, share the contract with a qualified lawyer who specializes in real estate law to ensure you receive the most accurate and reliable information.

Register for the Bidding

Arrive at the auction with plenty of time to register. You’ll need a bidder number, which requires your personal information. You’ll need proper, acceptable identification. Bring the required documents to the auction.

Stick to Your Max Bid

When the bidding starts, don’t let your emotions get the best of you. Remember all of your planning and preparation. Stick to your max bid. Don’t go over your allotted budget or prequalified loan amount. Make wise decisions on auction day.

For landowners looking to sell at auction, contact Ranch & Farm Auctions. We can answer questions and help with your auctioneering needs. For buyers hoping to purchase land, check out some of the upcoming Ranch & Farm Auctions near you.

Published on 2025-12-30