House Foreclosures At Auction
By Clint Jhonson
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.
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.