      
 All Foreclosed Home Auctions Are Not the SamePublished: Thursday, June 11, 2009 Nothing is more exciting than hearing the gavel fall and watching the auctioneer point in your direction as he cries out "SOLD"! Getting from pre-auction inspection to that fabulous moment on the auction floor however takes some practice and an understanding of how the auction works. According to the National Association of Realtors© there are three types of bidding processes when buying a foreclosed home at a real estate auction. As a buyer hoping to find the perfect Southern California bank owned homes, it is important to know which bid process applies to the property you are interested in if you want to be successful at auction. Reserve AuctionProbably the most frustrating kind of auction, a Reserve Auction can be deceiving because the highest bid is considered an offer, not a sale. The lender who owns the foreclosed property has the right to refuse the offer because it is below their Reserve Price - that bottom line number they have determined is necessary to let the property go. They determine before the auction the price at which the property will be sold and is under no obligation to accept offers that are below the Reserve Price. Although some lenders will make a decision on the spot to accept or reject an offer, usually the banks have up to 72 hours to make a final decision on your auction price. Minimum Bid AuctionThe Minimum Bid Auction is fairly straightforward as the highest bid is the final bid, however all bidding must start above a specified minimum. In other words, the lender sets the starting bid price and all bidders know what that starting bid price is before the auction opens. When purchasing foreclosures, bidders want to know that they are paying a fair market value, and knowing the bid price before they begin allows them to decide if they want to invest the time and energy into inspecting or checking the title for a particular piece of property. Absolute AuctionThe simplest form of home auction, the Absolute Auction results in the property being sold for the highest bid, no matter what price. Some Southern California foreclosures auctions offer hidden treasures with Absolute Auctions as lenders accept whatever price the highest bidder offers. For certain foreclosed properties, particularly Riverside County foreclosures that offer newer homes with great amenities at rock bottom prices, bidders are able to close the deal at a fraction of the property's original selling price and well below current market value. Don't let the fine print deter you from buying great Southern California foreclosures at a real estate auction. Do your home work and check here often for new tips helping more buyers than ever find perfect bank homes and successfully close the deal! Other Recent ArticlesHome Buyer Tax Credit Extended Until April, 2010Category: Recent Articles Published: Thursday, December 10, 2009 The federal tax credit has been extended to April, 2010, including an expanded benefit to existing home owners who sell their homes and then repurchase a new primary residence valued at $800,000 or less. This could be the perfect opportunity for buyers who wanted to cash in on home auction bargains but were fearful of lower resales on their existing homes. 57,000 Foreclosures Remain in California – Lenders Scheduling More Home AuctionsCategory: Recent Articles Published: Thursday, December 03, 2009 The Southern California foreclosures market may be shifting, with fewer homes entering foreclosure than in previous quarters. However there are still 57,000 existing foreclosures statewide that need to be sold, and lenders are looking at foreclosed home auctions as a major tool to sell large numbers of foreclosures in a short amount of time. Southern California Foreclosures Still the Bulk of Home SalesCategory: Recent Articles Published: Friday, November 27, 2009 Southern California foreclosures still account for the bulk of area homes sales and lenders are finding real estate auctions the fastest and most efficient method of clearing their books of REO properties. Buying a home at auction requires a little prep work, however and the experts at homeauctionexpo.com share their insight on how to find the best auction properties. |
