How To Buy A Foreclosed Home for Sale
When looking to purchase foreclosed homes for sale in a real estate auction, buyers should begin by developing a system to keep track of properties of interest. Since most successful auction buyers pursue several properties over a period of several months, a good tracking system is important to determine which properties are still available to purchase. After finding these properties, it’s a good idea to drive by the property’s location to get a better idea of its condition and neighborhood. For some buyers and investors, driving by the property has also facilitated a casual meeting with the owner or yielded a wealth of unexpected information from neighbors.
After visiting the property, bidders interested in purchasing these foreclosed homes for sale should find out as much information as possible about the estimated market value of the property. The opening bid at the auction is based on the total amount owed to the foreclosing lender and may include fees incurred because of the foreclosure proceedings. It’s important to know this amount to determine if the auction represents a potential bargain purchase when the opening bid is compared to the property’s market value.
Based on all the factors used to determine the potential bargain and financial capability, buyers will need to determine how much they can and should bid on each property. By setting a firm ceiling for bids, buyers avoid getting caught up in the excitement of the auction atmosphere and overbidding, which can result in little or no bargain. A reasonable purchase amount at auction is at least 20 percent below full market value, and often much better deals are possible. Other factors to consider are the rate of real estate appreciation in the area and the potential for increasing the property’s value by making repairs and improvements.
If a bid is won, buyers should be sure to get necessary documents from the auctioneer to verify that they are the winning bidder. Clarify with the auctioneer and a real estate attorney what further steps need to be made before taking ownership and possession of the property.
Hudson and Marshall has many Foreclosed homes for sale around the US. To view their auctions be sure to visit their their website. Their website is updated daily with new listings.
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