When someone thinks of an auction they start to panic and worry. But for the most part buying a home in an auction is no more stress than buying a home from a real estate agent. If you do it right, then you can end up with an amazing deal.
Most auctions take place at the courthouse and always start with a minimum bid based off of what is owed on the property. Since the property is usually owned by the government or a bank, if that bid is not met then they can decide to hold the property until another time which it will go back up for auction. Buyers go through a normal bidding process and as long as the initial minimum is met, then they take the home. They must pay via a certified or cashiers check within a certain time frame and then then home belongs to them via verified paperwork. Titles will be sent out within 10 days, but no less.
The reasons home go to auction is simply when owners fail to pay several months of payments then the banks go back to reclaim the home, this becomes a foreclosure. Another type of auction is one where the owner has not paid or owes a lot in taxes, this is considered a tax lien. There are always risks with these properties as you’re buying it site unseen, the home can be damaged, require lots of repair, but if you play it right then you can get a home at a great value and in turn own several great deal homes.
Now you want to take part, to take part in these auctions you need to register, once registered you’ll have access to homes that are available via auction. You must do your own research ahead of time to understand the area, the market, and what you’re getting into. To show your serious you also must put down at least 5% as a deposit. Make sure the schedule is accurate, when you’re ready to bid, just like the shows you watch, raise your card to signal your bid at the price announced. These type of homes can be purchased via many means, including FHA loan, don’t be scared away if you’re a first time buyer. Just make sure you do your research to prepare yourself for what you’re getting into.
If you do this right you can walk out ahead and with a great home in your possession.
Don’t let fear of the unknown scare you away from real estate investment; learn and profit! #Ironclad
- 1It’s not a traditional way of buying an investment property which means fewer people to compete with for the deal.
- 2Even first time home buyers can buy at auction with a mortgage they just need to do more research.
- 3You can save up to 30% of list price from buying at auction, meaning you can either just save money or improve the house you can purchase while staying in budget.
See the original at: https://www.fortunebuilders.com/real-estate-auction-process/