While the traditional method of trawling for sale listings, making bids, and negotiating with the seller has been a popular rite of passage for many home buyers, buying a house at auction is swiftly becoming a favored way to purchase property.
Buying a home through auction can be tricky, so it’s best to do your research and keep your cool on auction day, lest you find yourself stuck with a less-than-ideal place to live for a price you didn’t expect to pay. If you’re in the market to buy through auction for the first time, here are some things you need to know.
How To Find Houses Up for Auction
Real estate agents will often use the same methods to sell a house by auction as they do in a traditional sale: adverts in newspapers and online, posters in their office windows, and signs outside the property.
Depending on the reason for the sale, a home auction may be held at a local courthouse, an auction house, or, in some cases, online.
Viewing A House Before Auction
It’s always best to try before you buy, so make sure you are able to view the house prior to the auction. Some real estate agents will insist on exterior views of the home only, but, if you’re a new buyer, this may not be enough.
Seasoned home buyers can often pick a house by looking at the exterior and reading a description; buyers new to the game should bank on seeing inside first.
Checking The Price Of An Auction
Look into the price that is offered for the home you seek to buy; sometimes, if a house is in foreclosure, the starting price of the home may be the balance of the mortgage, or a lower price to get people to begin bidding. Lenders, such as banks, are not permitted to make a profit from selling a foreclosure and may often sell homes at a loss; look out for these bargains when checking house prices in your local area.
Bidding At An Auction
On auction day, make sure you enter the auction knowing the general value of the house and the maximum amount you are willing to pay; having these parameters set out will help prevent you from getting swept up in the auction process and bidding more than what you have or what the house is worth.
On the day, bring a cashier’s check – auction holders ask winners to pay for auction fees, bidding fees, and a deposit on the purchase. If you are successful on auction day, you will then have to close the deal with the seller just like any other property purchase.
If you need financing, you may wish to be pre-cleared by your lending company before the auction. Also, be aware that your winning bid may not be accepted. Many homes have a reserve price, and if the reserve is not met, the house will not be sold on the day.
If you are interested in buying a home through auction, go into the process knowing that auctions can be riskier than buying a home via traditional means. Also remember that just because a house is up for auction doesn’t mean you are guaranteed a good price. Some houses sell for a lot of money, and others sell cheaply but have hidden costs, such as urgent maintenance.
When you’re ready to find your new home by auction, call your local trusted real estate professional for information, answers, and the best deals in town.
Paying your income taxes each year leave your wallet a bit thin? There may be money hiding in your home that lessens your tax burden. Here are four places to look:
Something that the Europeans have been doing for decades has finally made its way over the Atlantic Ocean to North America: the trend is called micro housing, and it’s turned into an entirely new way of living.
Last week’s economic news included readings on February construction spending and multiple reports on employment data.
Moving into your home is an exciting time, and you shouldn’t allow higher than expected electricity bills to dampen your spirits. Every day, households around the world waste large amounts of energy.
If you are going to be staging your home for sale in the near future, you will most likely want to do it as professionally and successfully as possible to get the best sale price.
When purchasing a piece of real estate, it is important to ensure that the features of the home meet your criteria and best serve your goals.
While most homeowners are vigilant about regularly wiping down surfaces, disinfecting bathrooms, dusting furniture and mopping floors, there are many nooks and crannies that don’t receive as much attention.
If you live in a climate where your yard has been hibernating for months, then you’re probably ready for warmer weather and a hint of green outside your kitchen window.
Harsh winter weather conditions contributed to home prices falling in January. The S&P Case-Shiller 20-City composite index reported that home prices dropped by 0.10 percent in January, but after seasonal adjustments, home prices increased by 0.80 percent in January as compared to December. 12 of 20 cities posted declines in home prices in January.