Buying Real Estate At Auction
Any liens could become your responsibility if you buy the home, so having an attorney for real estate look into the possibility of liens before you bid would be a good idea. Houses at auction quite often have a myriad of problems associated with them.
buying real estate at auction
The last thing you want to discover is you just bought a home for $400,000 but then find out there is $100,000 worth of liens on the property. Doing a lien search is a must when buying houses at an auction.
Some real estate investors will seek hard money lenders to finance the project, especially when it will be a fix and flip. However, hard money loans have drawbacks, including much higher interest rates.
Read these additional home-buying resources to educate yourself about purchasing a house with less stress. These articles are written by well know, top-producing real estate agents and mortgage brokers.
About the Author: Bill Gassett, a nationally recognized leader in his field, provided the above Real Estate information on buying a house at auction. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 37+ Years.
An absolute auction is a standard real estate auction, where each bid must be higher than the last bid, and the auction ends when no participant bids higher than the most recent bid. The highest bidder is the one who acquires the property.
Consult with an experienced real estate agent or appraiser before the auction to determine an estimated market value and what the property will likely sell for. This is especially important if you plan to flip the home.
One alternative to purchasing a home at auction is buying a property via a short sale, which typically comes with the right to inspect the home in advance, a warranty deed and the requirement that the seller must pay any outstanding liens and taxes before closing. In a short sale, the mortgage lender agrees to accept a sale price less than the balance owed on the mortgage. This can happen when a borrower is financially in distress.
For real estate auctions, you may need to work with a broker or real estate agent to bid or make the purchase. Also, for real estate auctions, find out if financing is permitted. Many times it is not and the full purchase price is due when you win the bid.
Auctions are a different buying process than traditional sales. Suppose the property is a foreclosure or otherwise seized asset. Be sure to read all paperwork clearly, and work with a real estate attorney if possible so that nothing is missed. The purchase terms will ensure you are protected as much as possible.
No; you will be working directly with a third-party institution like a bank, a broker, or the auction house selling the property. Real estate agents are not part of this process. You will see necessary financing and title company employees as the sale closes, but you do not need to worry about securing a real estate agent to bid at an auction.
The online listing for each individual property owned by the FDIC will typically include the name, phone number, and e-mail address (if available) of the local real estate agent and/or broker, and the FDIC real estate contractor. Any of these parties will be able to provide more details on any property of interest.
Latitude Commercial provides commercial real estate services such as purchasing, leasing, landlord representation, tenant representation, and property management throughout Northwest Indiana and the Chicago Suburbs. To find out how we can help you, call us today at (219) 864-0200.
The OGS Division of State Asset and Land Management sells real property, either at public auction or by sealed bid, that is no longer useful or necessary for state purposes. This includes vacant land, and residential and commercial real estate.
Surplus real property sales are made through either open auction or sealed bid auction. Sealed bid auctions are used for those properties where there is limited interest. Prior to the sale, the property is appraised and a minimum bid set. The public auction process generally begins with bidder registration, which usually occurs a half-hour before the auction begins.
We understand that the thought of buying a home at auction can be somewhat intimidating. Most people only buy 1 or 2 homes in a lifetime. The truth is that buying a home at auction is a pretty simple process. The team at Enlisted Auctions would love to help you through each step.
The first in home buying, whether it is through a traditional real estate brokerage or buying at auction, is to determine your spending budget. For most buyers, this means a trip to your bank. Your lender can review your options and pre-approved you for a loan. The lender will give you all the details about the interest rates, monthly payments, loan terms, and more. Enlisted Auctions can recommend a lender if you are unsure of where to start.
There are several possible reasons why a home might go up for auction; the real estate auction process will vary slightly depending on why that particular house is going up for auction. However, the two most common reasons a house goes to auction are foreclosure and tax liens.
First-time homebuyers can buy at auctions, though they should familiarize themselves with the process. More often than not, first-time homebuyers will be going up against real estate investors with more experience in the process. The best way to prepare for this is by researching auctions, attending one or two before you are ready to buy, and asking for advice from someone who has purchased a home at an auction.
All of this is not to say you cannot do some research. Drive by the property, and consider asking neighbors what they know. Inquire with local real estate agents or past photos when the property has been on the market. Never, under any circumstances, should you trespass on the property. If you are unable to gather any information at all, consider skipping that home for the next one. While your financing may cover extensive repairs, you cannot always predict the depth of the costs you will incur.
What are some other benefits of buying real estate at auction? Auctions are often held with live bidding by the auctioneer so you can participate on site and watch other bidders. If you cannot attend the auction firm may offer online bidding and you can bid from your phone or mobile device. Some auctions feature multiple assets so you have the opportunity to buy more than one property at one auction event.
A: The primary difference between buying real estate at auction versus buying real estate conventionally is that at auction, you do your property evaluations and inspections, and prepare your financing prior to coming to the auction. If you have done your homework in advance, evaluated what the property is worth to you, and have arranged for the financing, buying real estate at auction will be a fun and easy. By doing your work beforehand, you can bid with confidence. You will know what you are getting for your money, from where you are getting your financing, and when you will close your transaction (generally 30 to 60 days after the auction). By participating in the auction process, you can feel confident that you are getting the property at a fair price because you need only bid one increment over the next highest bidder to win. The fact that all bidders are playing by the same set of rules avoids losing real estate over contingencies or seller concessions-if a contingency or concession is offered to one, it is offered to all.
A: Properties are open 1 hour prior to the starting time to allow buyers to do a final inspection. It is advisable that you arrive at the auction site at least 30 minutes prior to the time of the auction. By doing this, you will have plenty of time to take a last look at the property, ask questions, review materials and register. A real estate auction can be over in a matter of minutes so don't be late! Although there is no obligation to bid at an auction, all prospective buyers must register in order to bid. To register, you will need to provide evidence that you have the earnest money deposit required to bid. A valid driver's license or other acceptable form of identification is also required. The earnest money deposit must be in the form of cash, certified check or bank/cashier's check. See the Terms and Conditions of each sale to obtain the specifics as to the deposit requirements for the property of your interest.
A: The real estate purchase agreement will specify a closing date, customarily on or before 30-60 days, following the auction. The closing is held at either, a settlement company or attorney of your choice. When merchantable title is obtained and both parties are prepared to close, the buyer may often be accommodated with an earlier closing. Time is of the essence for both the buyer and the seller, and our services cater to the needs of both parties.
Adam holds real estate licenses in Illinois and Missouri and auction licenses in Illinois, Missouri, Colorado, Alabama and Arkansas. His level of expertise, experience and knowledge, combined with passion for his work, provide a strong foundation that has guided the company through a successful past and towards a bright future.
O-K Real Estate specializes in residential homes including rural acreages, as well as commercial properties and farmland. Call us anytime for all your real estate and auction needs!
There are alternative ways to buy besides the traditional channels of searching real estate listings and working with real estate agents. You can also purchase a property at auction. Also, be sure to check out our newly posted auctions each day on All Auction Sales for new real estate auctions in your area.
Perhaps the biggest risk of buying at auction is that you will have limited knowledge of the properties for sale, making an expensive misstep a real possibility. Also, as with any real estate purchase, you will need to read, understand, and sign lots of paperwork (ideally with the help of a real estate attorney). 041b061a72