      
 Check Bargain Status of Foreclosed Home Auctions Before BiddingPublished: Thursday, August 13, 2009 Single family home buyers and investors alike dream of finding foreclosed home auction bargains for pennies on the dollar. While buying foreclosures at a real estate auction can net you a terrific deal, it is important to check the facts before submitting the bid. Exuberant bidders might drive a price higher, but if the area's market price and comparable sales won't support that price, financing could become an issue. Likewise, if other foreclosures are selling direct from the lender through agents for less, you might be better off waiting until you find a similar property through a listing agent. How to Spot a Foreclosed Home BargainCheck the auction status of the property you are interested in. Is it a guaranteed auction, meaning that no matter how low the price is the property will sell? Or is it a reserve auction, where the winning bidder might not end up with the house if the lender has placed a reserve price that isn't met during bidding? Guaranteed auctions tend to be better bargains because the lender has not predetermined the minimum selling price. True market value prevails at auctions with no reserve set. After finding the right property, thoroughly inspect it for structural defects. Pay particular attention to big ticket repair items, such as the roof, foundation, plumbing and wiring. Not all foreclosures are the same, and some repairs are so costly that they undermine the great price you pay at a foreclosed home auction. The auction houses regularly schedule inspections three to four weeks before the auction date and in many cases those are the only dates the properties are available for in house review. If you miss a scheduled inspection you are taking a significant risk by bidding on a property sight unseen. Finally, compare previous sales and median home values in the community where your selected foreclosures auction is located. Know before bidding what the going rate for similar size, age, designed homes so you don't inadvertently contribute to an inflated price. Finding the right property at auction is exciting, but take care that you aren't the winning bidder on a house with a foreclosed neighbor that sold for half what you are paying at auction. 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.  August 2009
  S
M
T
W
T
F
S
 CategoriesBlog Roll & Resources
|
