What To Know Before Bidding On Foreclosure Sales Virginia Auction Houses Advertise
If you have been looking at houses lately, you know how much they cost. Homes for sale by owner occupants are out of reach for many home buyers. Good deals are available however for those willing to consider bank or government owned property. Many times these institutions decide to offer numerous residential properties utilizing the auction method. If this is something that interests you, there are things you should know before bidding on foreclosure sales Virginia auctioneers offer.
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.
You may assume you have a right to inspect the property before deciding whether or not to bid. That is true as long as the property is vacant. If the current owner, or a renter, is occupying the home, you may not be able to even set foot in the yard without being accused of trespassing. If the property is listed with a Realtor, there may be photos of the interior.
If you are intimidated by the speed and finality of the auction process, your Realtor can even bid for you. If you decide you want to attend the auction and get a bidder's card on your own, you should probably attend an auction as an onlooker first. Most auction companies charge a buyer's premium that is added to the high bid to reach the purchase price, and this is something you have to keep in mind.
Getting your finances in order before you attend an auction is important. Most auction sale contracts are not contingent on you being approved for a mortgage. If you are unable to perform, the auctioneer has the right, which is usually exercised, to turn your earnest money deposit over to the seller. Published minimum bids are helpful because it makes it easier for bidders to determine how much the bank expects for a property.
Multiple property foreclosure auctions usually attract a lot of investors, who know the real estate may sell under market value. You shouldn't feel discouraged if you lose the bid to someone more experienced. It is a good idea to find two or three properties you are willing to bid on to increase your chances. It is a bad idea to fall in love with a house and bid too much for it.
It is possible to buy a great house at below market prices by bidding on it competitively. You have to do some research and be smart about your bidding however. Friends and family will be impressed by how much house you got for the money you were willing to spend.
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.
You may assume you have a right to inspect the property before deciding whether or not to bid. That is true as long as the property is vacant. If the current owner, or a renter, is occupying the home, you may not be able to even set foot in the yard without being accused of trespassing. If the property is listed with a Realtor, there may be photos of the interior.
If you are intimidated by the speed and finality of the auction process, your Realtor can even bid for you. If you decide you want to attend the auction and get a bidder's card on your own, you should probably attend an auction as an onlooker first. Most auction companies charge a buyer's premium that is added to the high bid to reach the purchase price, and this is something you have to keep in mind.
Getting your finances in order before you attend an auction is important. Most auction sale contracts are not contingent on you being approved for a mortgage. If you are unable to perform, the auctioneer has the right, which is usually exercised, to turn your earnest money deposit over to the seller. Published minimum bids are helpful because it makes it easier for bidders to determine how much the bank expects for a property.
Multiple property foreclosure auctions usually attract a lot of investors, who know the real estate may sell under market value. You shouldn't feel discouraged if you lose the bid to someone more experienced. It is a good idea to find two or three properties you are willing to bid on to increase your chances. It is a bad idea to fall in love with a house and bid too much for it.
It is possible to buy a great house at below market prices by bidding on it competitively. You have to do some research and be smart about your bidding however. Friends and family will be impressed by how much house you got for the money you were willing to spend.
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