Real Estate Auction Action - Buying A Home At Auction
Due in part to the popularity of the U. S. Department of Housing and Urban Development (HUD)'s home auction program, more potential homebuyers than ever are buying homes at auction. Homes for auction aren't limited to just HUD, however. Many government entities auction homes for payment of back taxes, and some homeowners even auction their homes on eBay.com!
Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner.
Before the auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check the features, location, condition, and ownership history first. Afterwards, be sure to learn what the property is worth by looking at sales of comparable properties in the same area. Compare homes with the same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.
At the auction itself, resist the temptation to get into a personal bidding war, just "to beat out the other guy". Have a set price limit and stick to it. Other houses will come along, and you don't have to win the first auction that comes your way.
You should know that the price of a home at auction is typically the loan balance (if foreclosed), plus any back taxes owed, plus legal fees and other expenses in foreclosing the property. This will typically be the opening bid amount, and the price will go up from there. Even so, it's possible to get a great deal in an auctioned house, with a little research and planning first.
Also, know that you probably won't be able to get an inspection, and are buying the home "as is". If you can't do any needed repair work yourself, or can't hire it done within your budget, you may not end up getting such a bargain in the end.
About The Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
Related Articles:
Mortgage Industry Job Site Launched is a Ray of Light in the Shadow of the Liquidity Crisis
Free job posting and resume listing available now.
Bridging Loans - Fulfilling Financial Shortfall between Real Estate Transactions
You are trying to buy a new property and selling the current one to raise money for the new purchase. It is usually difficult corresponding sale of one property with the buying of another.
Telecomworx Announced a New Partnership with First Guardian Mortgage Corporation and Dexter Manley
Telecomworx a telecommunications interconnect services firm offering traditional and IP-PBX systems and network services since 1979, announced a new partnership with First Guardian Mortgage Corporation and Dexter Manley.
InvestSmart, LLC a Georgia based Real Estate Investment Firm, Celebrated Their 150th Real Estate Closing Transaction Since Their Inception in 2005
InvestSmart, LLC a Georgia based Real Estate Investment Firm, celebrated their 150th real estate closing transaction since their inception in 2005. However, what makes this occasion special is not the quantity but the quality of the 150 transactions. Although the national real estate market has slowed down in late 2007 and early 2008, there are excellent real estate opportunities for investors here in the Atlanta market. InvestSmart is turning over investment inventory to their investors at cut-throat prices.
ResortQuest Northwest Florida Real Estate, featuring Destin, to hold Open House event in September
ResortQuest’s Coastal Celebration will be held September 8th-10th from 2:00-6:00. ResortQuest Real Estate has decided to do something it has never done before and host an event showcasing a sampling of their property listings in the Northwest Florida region, including Destin, Florida
MBA 2007 MARI Report Exposes and Explores Residential Mortgage Fraud Against Lenders in US
The Mortgage Bankers Association (MBA) today announced that the Mortgage Asset Research Institute, LLC (MARISM), a ChoicePoint® (NYSE: CPS) company, has completed its 10th Periodic Mortgage Fraud Case Report to MBA. The report examines the current state of residential mortgage fraud and misrepresentation in the U.S. based on participating subscribers' reports to MARI.
Circling The Sunday Paper Classified Real Estate Ads Seemed Futile With Their Bad Credit-Then It Happened
After shoveling for a solid three years to get out of the debt hole they had created, Allen and Monica were making some progress. In a full effort to put their past credit history behind them there was still some nagging credit issues to get handled before they would be considered to have taken the full ?cure?.
Real Estate Investing – The First House Purchase
Real estate investing usually begins with the purchase of a house, rather than raw land or commercial property. The purchase of a relatively inexpensive house for rental or fix-up purpose is usually lower risk than any other type of real estate investment.
A Mortgage Protection Quote is Cheaper With an Independent Provider
By choosing where to take out your mortgage protection as opposed to adding it in with the borrowing can save you an enormous amount of money In some cases a mortgage protection quote taken this way can save you as much as 40% in comparison to the high street lenders
American Home Bank Announces American SystemBuilt Mortgage
"American SystemBuilt Mortgage is ideal for home manufacturers who want to participate in a joint venture arrangement or for those manufacturers, builders or dealers who are simply looking to work with a lender who specializes in the systemsbuilt construction process," commented Paul Fazzini, Senior Vice President of Joint Venture Development. www.americansystembuiltmortgage.com provides information and details.
Basic Real Estate Valuation
Given the current interest (dare I say hysteria) associated with investing in dirt and buildings, I thought it might be interesting for our readers to have a quick, dirty manual on real estate valuation. My perspective comes from years in the industry as well as some time learning at the knee of some of the better real estate minds in academia.
My First Real Estate Investing Deal And What You Can Learn From It
Every real estate investing deal is an opportunity for both profit and education. Well my first deal was a good combination of both. When I decided I wanted to get involved in real estate investing it took me eight months to decide to do my first deal.
Property Frontiers' International Real Estate Outlook for 2007
2006 has been another formative year for property investment markets, with the likes of Bulgaria and Dubai dominating media coverage and experiencing phenomenal popularity. However, as they edge ever closer to their saturation peaks and 2006 draws to a close, investors are setting their sights on new property markets. With the number of budget airlines escalating, an increasingly wealthy aging population and an escalating number of first time buyers attempting to get their foot on the ladder abroad, sales and growth in international property investment are likely to soar in 2007. Property Frontiers expect that 2007 will also see the market segment between lifestyle and pure investment purchases.
How Not To Be Ripped Off By Mortgage Brokers
One of the things that bothers me about the mortgage industry is the number of unscrupulous brokers that operate in this market.Talk about giving the industry a bad name!I worked for a mortgage lender until quite recently and I used to be shocked at the fees that brokers charged their clients.
ALEA Offers Luxurious Rosarito Condos on Prime Mexico Real Estate
Located 20 miles from the United States and Mexico border, Alea's 45 residences are situated within the gated community of Real del Mar. Overlooking the Pacific Ocean and sitting on prime property in Mexico, each residence has million dollar views Alea's two and three bedroom condominiums sit amid full-service amenities including: an 18-hole championship golf course, a quaint village town center, equestrian center, a chapel, tennis courts, convenience stores, gourmet coffee shop, a Habana Cigar bar, a sushi bar, a Residence Inn at Marriott and a variety of casual and fine dining restaurants.