Mar 28 2010
Bargains Can Still Be Had At Real Estate Foreclosure Auctions
Ever wonder how people make money in real estate? If they aren’t landlords, then chances are they have been buying and selling properties they have discovered through real estate foreclosure auctions. Real estate is like stock in that you have to buy low and sell high in order to make a profit. Participating in a foreclosure auction is a great way to buy low.
However you can subscribe to a foreclosure listing service that inform you when foreclosure auctions will happen anyplace in the country, you’re asking for trouble buying property in a marketplace you understand nothing about. For example, it’s really no good buying a small mansion in South Carolina if it is located in a city struck by a hurricane last year. The thing you need to accomplish is understand what specific market you want and then wait for a foreclosure auction inside your desired area.
It is perfectly okay to contact the owner of the property to try and do a deal so the property doesn’t go on the foreclosure auction block. Usually, owners are given about a month to find a buyer. It’s often much easier for banks or the government to deal with sales of foreclosed property than an auction.
Don’t participate in a real estate foreclosure auction just because you feel as if you have to be playing the market every moment of your life. You have to wait for just the right property. You’ll know it because it will match your written ideal as closely as possible. You can’t be swayed by dollar signs, thinking that you can soon sell a foreclosed home for twice what you bought it for. Plan on keeping the property for a couple of years, at least.
Because you are making such a huge investment, you don’t want to completely trust the words and reports of others. You need to go into the property and check it out yourself. Even if there has been a detailed inspection report from the bank or creditor’s evaluator done, don’t rust it. Get your own home inspector to check it out. In this way, you will know how much you should bid or even if you should bid at all.
Depending on the foreclosure laws in the state where the auction is taking place, you may have to pay for the property in full. Keep that in mind when determining your bid.
