The real estate auctions that happened before 2005 were more of trustee sales that took place in front of the house being auctioned. If you were to participate in those auctions, you would surely get a great deal, but there were drawbacks as well. If you won the bid with the highest amount then you were required to pay cash in full. Also you were not given an opportunity to inspect the house. There were also possibilities that the house had a lot of mortgages on it. All this and more kept many investors from participating.
Before you visit an auction site, question yourself as to why you want to invest on a house being auctioned? I would suggest you invest in real estate at an auction only if the home on auction is the only home you want to invest on! Also bid at an auction only if your financial conditions pursue to seek a bargain on the home irrespective of its conditions and locality! Now if you have made up your mind to buy at an auction, you must know that the foreclosing mortgage banks are the majority bidders in real estate auction.
An action plan will ensure you get the best deal in an auction. To begin with, ensure that the bid for the property begins much lower than your maximum purchase price. Compare the rates and terms and get approved by your lender that you are willing to stake your deposit in the auction. Each auction has guidelines and rules specific to the property. Make sure you read each word of the related terms and conditions carefully before you decide to bid in the auction.
Involving your realtor in the auction process will be a very good idea. Your realtor will advice you on what is best – whether participating in the auction will get you a better deal when compared to what you can get in the rest of the market. You can also take permission from the auction company to let your realtor represent yourself at the auction. The guidance of your realtor comes in handy when the need arises for you to analyze the starting to end bid values based on the previous year’s auction.
Before appearing for an auction, you must have all the information about the property for sale. For this, it is very essential that you inspect the house, neighborhood and also the tax and mortgage on the house before the day of the auction. Most important of all, if you bid the highest in an auction then you cannot back out later. Settle on a maximum price what you can afford and stick to it. If you cannot afford to increase you bid, do not even think about blowing out your funds in the auction.
For additional resources and information please visit the following sites.
Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com
T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
Facebook GreatWest Profile Page: http://www.facebook.com/searchmlshomesforsale
MySpace Brodie Stephens Blog: http://www.myspace.com/brodiestephens
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Picasa Web Album: http://picasaweb.google.com/brodiestephens
GreatWest Real Estate Careers- GMAC is looking for Professional Realtors to Join Us: http://www.CareersWithUs.com
Global Employee Relocation: http://www.employeerelocation.blogspot.com
Apply for a Loan: http://www.choice1funding.com
ActiveRain Blog Brodie http://activerain.com/blogs/brodiestephens
ActiveRain Blog Companyhttp://activerain.com/blogs/greatwestgmac
Company WordPress Sitehttp://www.thehomeholders.com