If you are interested in buying a house and want to get a really good deal on it, you may want to consider purchasing one from an auction. Houses are auctioned off for several reasons, but a common reason is after it forecloses. Buying a foreclosed home has its risks, but it can also be a way to get a great deal on a house. If you are preparing to buy a house at an auction and have never done this before, there are several important things you should know.
Do Your Research
When you hear about an upcoming auction on a house you are interested in, you should now walk in blindly and make an offer. Instead, you should take the time to research the property to learn as much as you can about it. There are several important things you should know about a house being sold at an auction, and here are some of these things:
- The current market value – House prices are dependent on size, condition, location, and current market values. You can learn more about the value of the house by examining all these things. You could also talk to a real estate agent about it, and you could look into comps in the area.
- Liens on the property – Buying a house with liens can create issues. When there is a lien, it means that someone else has rights to the home. If you purchase a house that has liens on it, you might be stuck paying these off. You can find out if a home has liens by contacting the recorder in your county. You will need to supply the address or parcel number of the land the house is on in order for the recorder to locate the home in the records.
If possible, try to get a look inside the house. This is not always an option, but you might be able to if you talk to the company handling the auction. If you cannot get inside the house, you might at least be able to peek inside the windows to see what the house looks like.
Find Out Requirements For Bidding
If you research the home and are still really interested in it, you may want to go to the bank to get approved for a loan. While the bank might not instantly approve you, they may be willing to pre-approve you for a loan. This is something that might be required for bidding on the house, but you should talk to the auction company to find out if there are other requirements.
Some auction companies might require large cash down payments by bidders, or they might require an all-cash payment, which means you would have to pay the entire thing with cash on the spot. If your lender will give you a loan to buy the house, you might be able to bring a cashier's check from the bank with you to satisfy this requirement.
Another thing to find out is how the bidding works and when it starts. If you really like the house and think you can purchase it for a great price, you will want to make sure you are at the auction on time. You will also want to make sure you know the rules and procedures for bidding on the house. Being prepared will help you have a better chance of winning the auction.
If you are interested in purchasing a house through an auction company, contact a company like Bob Parks Auction Company LLC that auctions homes to find out more information about upcoming auctions of homes in your area.