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.
Normally, you wouldn't consider bidding on a house without seeing the inside. You may not have a choice with bank owned property. If the home is occupied, by a tenant or current owner, you should not even walk into the yard unless invited. Your only option may be a drive by inspection or photos taken by a Realtor.
Some inexperienced bidders get intimidated by the quickness of a live auction and prefer to have their Realtors do the bidding on their behalf. If you would rather do your own bidding, you should consider attending a few auctions just to see how they are conducted before you participate. If there is a buyer's premium added to the high bid, you need to keep that in mind.
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.
Normally, you wouldn't consider bidding on a house without seeing the inside. You may not have a choice with bank owned property. If the home is occupied, by a tenant or current owner, you should not even walk into the yard unless invited. Your only option may be a drive by inspection or photos taken by a Realtor.
Some inexperienced bidders get intimidated by the quickness of a live auction and prefer to have their Realtors do the bidding on their behalf. If you would rather do your own bidding, you should consider attending a few auctions just to see how they are conducted before you participate. If there is a buyer's premium added to the high bid, you need to keep that in mind.
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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