Buying property in a foreclosure auction is a fantastic way to save money on real estate in contrast with open market purchases. Unfortunately, it’s also a fantastic way to overspend on a piece of property which you are unfamiliar with. To avoid this from happening, determine a bid price for the property prior to the bidding begins. The real key to creating a proper pre-bid determination lies in preparation. The more you know about the property and the auction procedure, the better able you will be to bid with confidence.
Search for your nation’s foreclosure laws which protect foreclosure auctions by checking foreclosure auction sites such as RealtytTrac.com or even ForeclosureLaws.org, or by contacting an area real estate agent. Check the laws on how much of a premium the winning buyer must cover. A percentage will be added to the buyer’s cost.
Research the property for sale which you are planning to buy. Collect information as to the physical design and condition of the property. Drive from the property once it is listed to get a view of its general condition. Look carefully at the arrangement for signs of damage.
Determine the possible market value for the property by contacting a real estate broker to get a listing of recent prices paid for comparable properties in the region. You may be charged a small charge for the listing.
Start looking for any outstanding liens against the land which you might be liable for if you win the auction. Pay a visit to the county tax assessor’s office and perform a title search for the property using the property address. Total up all the exemptions from the property.
Determine the highest bid price for the property by subtracting the liens from the market value of the home. The minimum bid price is the estimated loan amount owed to the lender which foreclosed on the property. Locate this information by checking the foreclosure documents, which are public record. In which the land is situated, you will locate them.
Pick the minimum bid as a starting point and bid up your way against competitors until you win or reach your highest bid and quit.