|
  |
|
|
Property Auction Tips For Buying A Bargain Home
Property auctions are going to be the way many properties are bought and sold for the next few years or until the real estate market settles down. Although a property auction is similar to most other types of auctions, there are a number of things you need to be aware of. Make sure you understand the rules and regulations of the auction you are attending as these change from state to state and even from auction to auction. If you are planning to bid on the property to live in, the process is fairly easy but does require some homework.
When you plan to live in it you'll probably have checked the property out personally as well knowing the area. If you can afford it you should have property you're interested in appraised and inspected by a property inspector. If this is not a viable idea you could have a Realtor do what's call a BPO (Brokers Price Opinion) These are fairly reasonable and while not as good as an appraisal might be adequate. If you don't want to spend any money you should be able to get a real estate agent to give you a property profile which will give you some idea of the value.
Take anyone you know (especially with any type of real estate or construction related skills) to take a look at it and hopefully they can help you get an idea of what its worth. Property bought at auction is normally sold "as is and where is” with no guarantees, warrantees or disclosures so you need to be very diligent in your inspections. Don't forget to estimate any repairs that you'll need to do prior to living in the property and make sure they are included in your price calculations. There also may be auctioneer fees and sometimes back taxes and liens which you'll also need to calculate. An easy way to do this is to figure out what the property will be worth when you're ready to move in. This figure will be your base and from it you subtract the repairs, fees and any costs. That figure will be your top bid amount. Make sure you check the guidelines of the auction to find what you need to be able to bid. A deposit may be due on the day of the auction and some auctions may require bank letters of guarantee, banker's draft or a cashier's check in order to bid. Upon a successful bid, a deposit may be payable in cash, by certified or cashier's check, or by a personal or business check if you have a bank's letter of guarantee. You can't just walk in and bid, you have to prove you can buy what you are bidding on. You should get pre-approved for a mortgage for the amount you'll need to complete the transaction. Have your financing set up before you bid. No purchase can be contingent upon financing. All purchases are based on the ability to close. Its a good idea to go to the auction an hour or so before its due to begin. This way you make sure your registration is valid and the properties you're interested in are still available. Check to see there are no last minute changes that could affect you. Be sure to listen to the auctioneer before the auction begins for the bidding process.
If you've done your home work you should have a good idea of what you can pay for the property you're interested in. Be sure all the costs have been calculated. Write your maximum bid down where you can see it and don't go over it. There will be other properties so keep calm. Don't make any bids till the opening excitement has kind of died
down. Your bid will just add to the frenzy, so sit tight and when you think the bids have stalled, jump in if the bidding is under your maximum. If it isn't wait for the next one on your list. Don't bid on any that you haven't inspected thoroughly. It may sound like a bargain but you don't what the reason is for the low bids. Also keep in mind the first few properties are usually the cheapest because everyone is waiting to see what’s going to happen. Penalties for backing out of the winning can be dear, so be sure you really want what you're bidding on. The balance of the winning bid price is due in a certain number of days after the auction has closed. When you have a winning bid, let your lender know right away so the time you have to close doesn't run out on you. To get a feel for what’s going to take place it might be a good idea to attend an auction without planning on buying anything. This should keep you from having doubts about the procedures. If you're looking to buy a bargain home an auction is probably one of the easiest places to do it and a good thing about it, you actually set your own price.
|
Contributor's Note
About the Author: Don Levy is a retired mortgage broker with a 40 year real estate career, during which he was also
an investor, surveyor, Realtor and appraiser. His website has a FREE Report at http://profitinforeclosures.com with everything you need to know about investing in foreclosures and lease options. You can also go to his blog at http://healthy-and-wealthy-now.com/realestate to get information on lease option and all other aspects of the real estate field. The blog at http://profitinforeclosures.com/leaseoptions features lease with option to purchase, rent to owns, etc.
|
|
|
 |
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "Property Auction Tips For Buying A Bargain Home " has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
