If you are house hunting, you know how expensive real estate is, and how difficult it can be to get the kind of property you really want and stay within your budget. Certain banks bundle the foreclosed inventory they have and offer them to the general public at auction. Purchasing property at one of the foreclosure sales Virginia auction houses promote can be great opportunities for those who do their homework.
If you have never participated in a real estate auction before, you need to understand the process before bidding. It is similar in some ways to the big online auction sites most people are familiar with. It is more complicated however than bidding on a handbag or a pair of shoes. Not everyone is familiar, for instance, with the difference between foreclosed and seized property auctions.
Most of the properties banks and government agencies offer have clear titles and any back taxes paid to date. Closings usually occur within thirty to sixty days. By contrast, sheriff's sales sell without any warranties, and the successful high bidder has to pay cash for the property on the day of sale.
You may assume you have a right to inspect the property before deciding whether or not to bid. That is true as long as the property is vacant. If the current owner, or a renter, is occupying the home, you may not be able to even set foot in the yard without being accused of trespassing. If the property is listed with a Realtor, there may be photos of the interior.
Auctioneers talk fast and the bidding can be brisk. If this intimidates you, you can authorize your Realtor to represent you. Those who want to try bidding themselves should attend an auction or two to see what they are like before participating. Unlike traditional sales, most auction houses add a buyer's premium to the high bid at contract signing. You should keep this in mind when you are determining how high you can bid.
Most auctions are not contingent on the ability of the purchaser to obtain financing, so you have to get pre-approved for a loan before you consider bidding. When you don't, and it turns out you cannot close due to lack of funds your earnest money can, and probably will, be forfeited. Some auction companies publish minimum bids, which can give you an idea of what the bank is willing to take.
A lot of investors follow multiple property foreclosure auctions because most of the properties are offered well below market value. You shouldn't be discouraged if you are outbid by someone who is more experienced than you. It is usually a good idea to be willing to bid on several properties in the hope of getting one of them instead of setting your sights on the one you fell in love with.
If you are willing to do some homework, purchasing a foreclosed property can be a great way to become a homeowner. Competitive bidding in an open forum is exciting and informative. You don't have to be an experienced auction goer to get a good deal.
If you have never participated in a real estate auction before, you need to understand the process before bidding. It is similar in some ways to the big online auction sites most people are familiar with. It is more complicated however than bidding on a handbag or a pair of shoes. Not everyone is familiar, for instance, with the difference between foreclosed and seized property auctions.
Most of the properties banks and government agencies offer have clear titles and any back taxes paid to date. Closings usually occur within thirty to sixty days. By contrast, sheriff's sales sell without any warranties, and the successful high bidder has to pay cash for the property on the day of sale.
You may assume you have a right to inspect the property before deciding whether or not to bid. That is true as long as the property is vacant. If the current owner, or a renter, is occupying the home, you may not be able to even set foot in the yard without being accused of trespassing. If the property is listed with a Realtor, there may be photos of the interior.
Auctioneers talk fast and the bidding can be brisk. If this intimidates you, you can authorize your Realtor to represent you. Those who want to try bidding themselves should attend an auction or two to see what they are like before participating. Unlike traditional sales, most auction houses add a buyer's premium to the high bid at contract signing. You should keep this in mind when you are determining how high you can bid.
Most auctions are not contingent on the ability of the purchaser to obtain financing, so you have to get pre-approved for a loan before you consider bidding. When you don't, and it turns out you cannot close due to lack of funds your earnest money can, and probably will, be forfeited. Some auction companies publish minimum bids, which can give you an idea of what the bank is willing to take.
A lot of investors follow multiple property foreclosure auctions because most of the properties are offered well below market value. You shouldn't be discouraged if you are outbid by someone who is more experienced than you. It is usually a good idea to be willing to bid on several properties in the hope of getting one of them instead of setting your sights on the one you fell in love with.
If you are willing to do some homework, purchasing a foreclosed property can be a great way to become a homeowner. Competitive bidding in an open forum is exciting and informative. You don't have to be an experienced auction goer to get a good deal.
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