Foreclosure How To Buy

Archive for the ‘Auction’ Category

A bank foreclosure sale at a real estate auction can be a great deal if you have done your research and know when to stop bidding. On the other hand, if you only half heartedly did the minimum research, you could find yourself in a very bad situation real fast. The way to purchase a property at auction is to be the highest bidder, the first time you attend an auction you will realize how quick a process it really is and why you need to be prepared in advance.

If you intend to bid on a property at auction you will be competing with the lender and any other investors interested in the property. Before the day of the auction, you have to find out as much as you can about the properties history, any back taxes, environmental pollution, liens or easements against the property and repairs that may have to be made. All of these expenses need to be added up and figured into the highest price your willing to bid and still make a profit. When you go to the foreclosure investing auction know the highest bid you can make and still make your profit margin and stick to it, if the bid goes higher just walk away, this property will not be profitable for you.

There are many advantages to buying a Bank foreclosure sale at auctions, if your looking for discounted property and exercise some patience you can find discounted properties ranging from a comfortable profit to very large profits. The average auction property will discount for thirty five to forty five percent off the market value providing you the opportunity to make an outstanding profit on your original investment.

There are also disadvantages to investment properties bought at auction, in my opinion the biggest drawback is you can rarely do an on site inspection of the property to evaluate the cost of repairs accurately. Before bidding on a property you need to make sure it has a clear title by having a title search done, and they can be costly. Also you will need up to ten percent of the purchase price up front. Some minor nuisances are Bank foreclosure sale being postponed or delayed.

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