Property Auctions Vs Traditional Real Estate Purchases

Property auctions take place after a property hasof these resources as you can.
been placed in foreclosure by a bank, lender orProperty auctions generally require you to be able to
government agency. These properties have beenpresent them with a 10% down payment on the bid in
places in foreclosure due to the fact that the ownerthe form of a cashiers check, certified funds or money
has been unable to meet the repayment demand oforder. If you have ready cash available, I am sure they
his mortgage, his tax bill, has committed a federalwill accept this too, but who wants to carry a
offence and a variety of other less consequentialbriefcase full of cash to a property auction? Certainly
factors.not me, unless I had a couple of body guards! You will
One of the most enticing factors that leads investorsbe expected to close the deal within a period of thirty
to make purchases of properties at auctions is thedays and this means coming up with the remaining
fact that they are able to make a profit on resale. For90% balance on the price, plus taxes, closing costs and
home buyers it is a wise choice because they areother expenses. Obtaining pre-finance is a way to cut
usually able to afford something a little more than theyto the chase and close the deal as quickly as possible.
would normally be able to afford and live in a greatlyA home purchase at an auction cannot be made
discounted home. In the US today more people arecontingent upon finding a way to finance it.
actually buying foreclosed or properties on auction,Property auctions are held at the County level on a
than they are making traditional real estate purchases."where-is" "as-is" basis, so it is important to find out as
As buying at property auctions is one of the moremuch about the property you have in mind as possible.
riskier ways of buying property, it is important that theThis means trying to inspect the property, conducting
home buyer knows what he is doing. I can't stress thetitle deed searches and finding out what outstanding
importance of educating yourself in the foreclosureliens have not been paid.
and auction procedures enough. Homes available onThree are thee auction methods used, the reserve
property auctions are a matter of public record andauction, the minimum bid auction and the absolute
can be found on the Lis Pendens at any countyauction. Find out about these methods and which one
courthouse. Auction sale dates will be listed, so attendis to be used in the auction your short-listed property
a few of these and get a feel for it before making awill be sold on. Be careful of the risks and pitfalls and
bid. Online listing services also specialize in informationyou might just land yourself a beautiful, well discounted
regarding property auctions so make use of as manyproperty.