|
Table of Contents
1. Property Auction Tips For Buying A Bargain Home
2. House Foreclosures at Auction
3. 14 Helpful Tips On Buying Property At Auction
4. Learn How And Where To Buy Property Cheap At Government Auctions
5. IRS Auctions - What To Expect When Bidding At An Internal Revenue Service Auction
6. The Absolute Best Guide to Government Auctions & Foreclosures !
1. Property Auction Tips For Buying A Bargain Home
Property auctions are going to be the way many properties are bought and sold for the next few years or until the real estate market settles down. Although a property auction is similar to most other types of auctions, there are a number of things you need to be aware of. Make sure you understand the rules and regulations of the auction you are attending as these change from state to state and even from auction to auction.
If you are planning to bid on the property to live in, the process is fairly easy but does require some homework.
When you plan to live in it you'll probably have checked the property out personally as well knowing the area. If you can afford it you should have property you're interested in appraised and inspected by a property inspector. If this is not a viable idea you could have a Realtor do what's call a BPO (Brokers Price Opinion) These are fairly reasonable and while not as good as an appraisal might be adequate. If you don't want to spend any money you should be able to get a real estate agent to give you a property profile which will give you some idea of the value.
Take anyone you know (especially with any type of real estate or construction related skills) to take a look at it and hopefully they can help you get an idea of what its worth. Property bought at auction is normally sold "as is and where is” with no guarantees, warrantees or disclosures so you need to be very diligent in your inspections.
Don't forget to estimate any repairs that you'll need to do prior to living in the property and make sure they are included in your price calculations. There also may be auctioneer fees and sometimes back taxes and liens which you'll also need to calculate. An easy way to do this is to figure out what the property will be worth when you're ready to move in. This figure will be your base and from it you subtract the repairs, fees and any costs. That figure will be your top bid amount.
Make sure you check the guidelines of the auction to find what you need to be able to bid. A deposit may be due on the day of the auction and some auctions may require bank letters of guarantee, banker's draft or a cashier's check in order to bid. Upon a successful bid, a deposit may be payable in cash, by certified or cashier's check, or by a personal or business check if you have a bank's letter of guarantee. You can't just walk in and bid, you have to prove you can buy what you are bidding on. You should get pre-approved for a mortgage for the amount you'll need to complete the transaction. Have your financing set up before you bid. No purchase can be contingent upon financing. All purchases are based on the ability to close.
Its a good idea to go to the auction an hour or so before its due to begin. This way you make sure your registration is valid and the properties you're interested in are still available. Check to see there are no last minute changes that could affect you. Be sure to listen to the auctioneer before the auction begins for the bidding process.
If you've done your home work you should have a good idea of what you can pay for the property you're interested in. Be sure all the costs have been calculated. Write your maximum bid down where you can see it and don't go over it. There will be other properties so keep calm. Don't make any bids till the opening excitement has kind of died
down. Your bid will just add to the frenzy, so sit tight and when you think the bids have stalled, jump in if the bidding is under your maximum. If it isn't wait for the next one on your list. Don't bid on any that you haven't inspected thoroughly. It may sound like a bargain but you don't what the reason is for the low bids. Also keep in mind the first few properties are usually the cheapest because everyone is waiting to see what’s going to happen.
Penalties for backing out of the winning can be dear, so be sure you really want what you're bidding on. The balance of the winning bid price is due in a certain number of days after the auction has closed. When you have a winning bid, let your lender know right away so the time you have to close doesn't run out on you. To get a feel for what’s going to take place it might be a good idea to attend an auction without planning on buying anything. This should keep you from having doubts about the procedures. If you're looking to buy a bargain home an auction is probably one of the easiest places to do it and a good thing about it, you actually set your own price.
2. House Foreclosures at Auction
Amelie MagAuthor:
We all know it: open cry bidding means placing the auctioned item on a competitive market. On this market, you will frequently encounter the opportunity to bid for house foreclosures. Due to the fact that these are distressed properties, this is a particular type of real estate auction where the properties auctioned may very likely be obtained within price ranges benefiting the buyer. However, the buyer is not the only one who gains advantages from this kind of real estate auction. On the contrary, the seller will have his own profits, even if we are talking about house foreclosures.
The first and most significant advantage point for the seller is that the marketing plan is regularly translated into dynamic, persevering, determined actions, as they should be when real estate auction is concerned. This means that the competing atmosphere typical for bidding circumstances will render house foreclosures, as our case is, more noticeable and, at the same time, circumscribe them to aggressive (and therefore beneficial) interest. Moreover, the sellers are not included in the transaction, a fact which saves them a lot of time and a lot of stress as to how they should conduct the negotiations to their advantage. When house foreclosures are released on an auction market, the owner of the house is no longer involved in the direct selling of the property.
Even more, because these are real estate auction circumstances, house foreclosures will be sold incredibly fast. No need to worry that the selling process is going to last forever or that it is going to be very difficult to find the homebuyer/investor ready to make an acceptable offer. The moment that house foreclosures enter the auction market, a lot of the time which would have been spent on individual investigations (the right of the potential homebuyer to see what he is going to buy) is spared because real estate auction means acting on the spot, prepared to buy even properties you haven’t yet seen, as long as you consider them a profitable investment or a reliable future home. In addition, since the negotiations are practically succeeding one another at incredibly fast developing seconds, the sale is considerably accelerated as compared with a case where the seller is supposed to reach a face-to-face compromise with a potential homebuyer/investor.
One advantage shared by both the seller and the buyer is that the day when a certain foreclosed property is going to be sold in a real estate auction is known. This eliminates a lot of the stress generated by the fact that you (either seller or buyer) don’t know when you will finally be able to transact/acquire a certain property. To what concerns the buyer’s advantages, one of them is that, especially in the case of house foreclosures, the potential homebuyer is fully aware of the fact that the seller is determined to sell a house on the exact spot, at the precise moment of the auction. Therefore, certainty as to the seller’s resolve to sell is one aspect covered to the buyer’s advantage.
Worried that you cannot be certain of just how “in good condition” a house is? You have certainly heard that not all house foreclosures guarantee houses that do not need repairs or adjustments. Well, however, in real estate auction circumstances, each potential homebuyer will receive the customary due diligence checklist, in which data concerning potential damages which require immediate adjustment are also included. Subsequently, even if you cannot proceed to an on-site investigation of the houses auctioned, a type of house analysis is however available.
Nonetheless, never forget that in open cry bidding circumstances you are on a permanently competitive market. At times, even foreclosed properties may reach prices matching the quality of the market. This means that the price ranges are also likely to turn competitive, which, again, is an aspect offering advantage to both the seller and the buyer. While for the seller the advantage is quite obvious (he might just get the chance to sell a distressed property at a price very close to the real market value of that property), the buyer needs to look deeper into the consequences of acquiring even a distressed property at a competitive price. More precisely, a property purchased within competitive limits is a property that actually has a competitive value. As a result, the knowing, resourceful investor will appreciate a valuable opportunity which could bring him subsequent profit. Also, pay attention to one detail when you auction for foreclosures: 10% cash, cashier’s check or money order must be presented at the time of the bidding (of course, by the bidder).
In the end, foreclosed homes sold in real estate auction circumstances make an advantage both for the seller and for the homebuyer. A house, even a foreclosed one, bought at real market value, if exploited skillfully, is a chance to obtain unmatched future gains. The key is to have the necessary determination to keep up the pace with the competitive market initiated by any auction.
Article Source: http://www.articlesbase.com/finance-articles/house-foreclosures-at-auction-107952.html
About the Author:
House foreclosures will find their buyers, quickly and with a gain, in real estate auction circumstances. The gain – in the form of competitive advantages – is on the both sides of the transactions, i.e. the seller and the buyer.
3. 14 Helpful Tips On Buying Property At Auction
Author: Niccolo Svengali
Beginners look at property auctions as a way of snagging a bargain, or finally getting that farm they've had their eye on for twenty years. To the seasoned pro, it's just another day at the office; a handy way of adding to their portfolio. To get the best out of them, you need to prepare in advance. Here are a few tips to help you on your way:
1. Look at newspaper classifieds, the Yellow Pages and internet search engines. Call nearby real estate agents. Add your name to local auctioneer's mailing lists.
2. Get a list of properties. Get as much information as possible beforehand from the auctioneer. Visit the properties; auctioneers generally have a preview date. Have any property you're interested in inspected by a qualified surveyor, if you can afford it. If you can't, take your most knowledgeable friend with you to have to take a gander at it.
3. Choose your desired property. Get its specifics: size, amenities, how much is owed on it, if anything, and what the opening bid is. Get pre-approved for a mortgage, if needed. Have your financing set up before you bid.
4. Compare the sales prices of similar properties in the area so you have a good idea of what it's worth. Prices for similar properties within three miles of the site are the most reliable.
5. A deposit may be due on the day of the auction. Some auctions may require bank letters of guarantee, banker's draft or a cashier's cheque in order to bid. Upon a successful bid, a deposit may be payable in cash, by certified or cashier's cheque, or by a personal or business cheque accompanied by a bank's letter of guarantee. You can't just turn up, bid and walk away; you've got to have cash to hand!
The remaining balance of the winning bid price is due X number days after the auction has closed. No purchase can be contingent upon financing. All purchases are based on the ability to close.
6. Check terms and conditions carefully before bidding. Not all terms are the same for every auction. There is no limit to the number of lots you can buy.
7. Check the auction time, date and venue. Go to the venue one hour before the auction time. You can meet on-site staff, confirm your registration and get any questions answered.
8. Mentally set your maximum bid. Don't get swept up in the excitement. Stay quiet if there are several people bidding on the same property; your bid will only escalate matters. When most have dropped out and the bidding has slowed down, you step in. You can avoid bidding up your own fee.
9. The first and second properties on the list go for the cheapest price. People are waiting to see what the other fella is doing. A couple of good deals go by before they realise they'd better get cracking. Their timidity could be your chance!
10. Penalties for backing out of a winning bid can be steep, so be sure of what you're getting into. Contact your lender as soon as possible after the auction to finalise your mortgage.
11. Property bought at auction is 'sold as seen', with no warranties, guarantees or disclosures. It's up to you to check it out beforehand.
12. Listen to the auctioneer before the auction begins. The bidding process should be be explained in detail.
13. Consider the additional costs of buying at auction; the auctioneer's fee, any liens or taxes owed against the property.
14. Realize that you're not obliged to buy anything. Walk away and be glad if the deal isn't right for you.
Auctions are a quick way to expand your real estate portfolio, or get your first house. Many people bidding will be professional. With a bit of research and preparation, you can be too!
Article Source: http://www.articlesbase.com/real-estate-articles/14-helpful-tips-on-buying-property-at-auction-269570.html
About the Author:
Niccolo Svengali is the webmaster of property, electronics and video web sites in Palermo, Sicily.
4. Learn How And Where To Buy Property Cheap At Government Auctions
Government auctions are where you can bid on foreclosures, seized properties, repossessed homes. We offer a one stop shop for your real estate investment needs. We provide the sources to find affordably priced real estate investment opportunities. Those are real hidden 'gems'. You can also see government auctioned cars, boats, jewelry and anything else of value that the government has seized and will auction off on behalf of government and police agencies. Auctions are held everyday so click on AuctionsPass to find out more about this exciting opportunity.
5. IRS Auctions - What To Expect When Bidding At An Internal Revenue Service Auction
The Internal Revenue Service (IRS) has got the power to capture the property of the defaulted taxpayer. There are no exemptions. Including real estate, cars and even collectibles, all belongings are liable to be captured.
The Internal Revenue Service is also responsible for getting the properties they seize up for bid at auction. The auction is Mandated by law to be open and advertised to the public.
If you want to bid at an IRS real estate auction, then you should be aware of certain things.
In the first place, you need to be aware that IRS real estate bidding is different from bidding because of foreclosure by either Fannie Mae, Freddie Mac or HUD. In reality, it was the auction of property captured because the tax payments were not made. A different set of rules apply to these particular actions.
Is there a mortgage on the property? The Internal Revenue Service will assuredly monitor correspondence with the law. The IRS website contains information on finding out if any hindrances or claims have been levied against a property that is listed on Form 2434-B. It is not guaranteed that you will be received the correct and complete information. We give you this information only to help you, the prospective bidders, decide upon the value of the item being auctioned. Buyer Beware! Know what you are purchasing prior to doing so. The IRS conveys the property it sells by means of a Quit-Claim Deed. Prior to bidding on real property, you should check with an organization like the PALS to see if an independent title search has been performed.
Upon winning an IRS property bid, there is a waiting period of 180 days during which any mortgage company or person who might have a possible claim on the property can file a motion. Any real property won at an IRS auction, does not come with any warranty. The Internal Revenue Service can’t give you a guarantee. They will let you know up front that the property available to be bid on is being sold "as is" and "where is." You are buying it exactly how it is and if there is work to be done to it, it is up to you. If you are unhappy about this after the fact, that is very unfortunate. It is not possible to initiate legal proceedings against the IRS.
6. The Absolute Best Guide to Government Auctions & Foreclosures !
If you want to buy foreclosure properties at the best prices (many times at auctions) you can't afford to pass up the opportunity to be a member of Government Austions where you will find out where the auctions are and when they will take place. Not only will you find property auctions but also cars, boats, jewelry or anything of value. The government also auctions off surplus items.
|
