Do you always have to pay in cash at an auction?

Hello, I have a question and I hope you can help me with it. Newspapers often feature beautiful houses that are being auctioned, and there are surely some bargains. Now, an acquaintance told me that if you bid there, you have to pay the purchase price immediately in cash, is that true?

That is true, if you buy something at an auction, you must pay the money immediately in cash on the spot. But whether this is also the case with a house purchase, I cannot tell you exactly.

Hello, when buying a house it is surely different than with an ordinary auction. Who has that much money in their pocket, that would be far too risky. And what if you don’t get the house because someone bids more, then you would have to keep the money until next time!?

If that were common practice, then you could see a lot of very nervous people carrying suitcases full of money at a house auction. That is certainly not the case, I suppose they would rather have a letter from the bank with them guaranteeing the money.

Whoever wants to buy a house through this method must have a confirmation from the bank that they will receive the money immediately if they win the bid. Otherwise, it could be that someone is bidding who does not have the means to purchase the property at all.

In a regular auction, you always have to have the money with you. But not when it concerns a house or an apartment. For that, you receive a letter from the bank confirming that you will immediately get the money as a loan.