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Real Estate Auction Action - Buying A Home At Auction


Due in part to the popularity of the U. S. Department of Housing and Urban Development (HUD)'s home auction program, more potential homebuyers than ever are buying homes at auction. Homes for auction aren't limited to just HUD, however. Many government entities auction homes for payment of back taxes, and some homeowners even auction their homes on eBay.com!

Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner.

Before the auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check the features, location, condition, and ownership history first. Afterwards, be sure to learn what the property is worth by looking at sales of comparable properties in the same area. Compare homes with the same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.

At the auction itself, resist the temptation to get into a personal bidding war, just "to beat out the other guy". Have a set price limit and stick to it. Other houses will come along, and you don't have to win the first auction that comes your way.

You should know that the price of a home at auction is typically the loan balance (if foreclosed), plus any back taxes owed, plus legal fees and other expenses in foreclosing the property. This will typically be the opening bid amount, and the price will go up from there. Even so, it's possible to get a great deal in an auctioned house, with a little research and planning first.

Also, know that you probably won't be able to get an inspection, and are buying the home "as is". If you can't do any needed repair work yourself, or can't hire it done within your budget, you may not end up getting such a bargain in the end.

About The Author

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.


MORE RESOURCES:

RGE Monitor

US Treasuries Decline Before Record $30 Billion Debt Auction
Bloomberg - 4 hours ago
7 (Bloomberg) -- Treasury three-year notes fell before a record $30 billion auction of the securities. Treasuries of all maturities also declined on concern ...
TREASURIES-Longer bonds fall on auctions, issuance fears Reuters
Treasurys Slide; Long Bond Drops Wall Street Journal
Big Year Coming For Bonds Forbes
CNBC - Reuters
all 188 news articles


Boston Globe

Japanese 30-Year Bonds Decline as Dealers Prepare for Auction
Bloomberg - 8 hours ago
7 (Bloomberg) -- Japan’s 30-year government bonds fell for a second day on speculation dealers reduced holdings of debt in preparation for an auction of 1.9 ...
Japan 10-Year Bonds Fall as Stock Gains Reduce Demand for Debt Bloomberg
Japan Bond Futures Fall as Stock Gains Reduce Demand for Debt Bloomberg
Japanese 10-Year Bonds Fall a 2nd Day as Stock Gains Sap Demand Bloomberg
all 427 news articles


BOND REPORT: Treasurys Modestly Lower Ahead Of Three-year Notes ...
CNNMoney.com - 8 minutes ago
Another $112 billion in short-term bill auctions are scheduled as well. Also on tap, Treasury Secretary Henry Paulson will discuss the role of Fannie Mae ...


Record UK Gilt Sales Raise Risk of Auction Failure
Bloomberg - 4 hours ago
7 (Bloomberg) -- Britain may overwhelm bond investors with a record number of quarterly debt sales, risking the first failed auctions since 2002 as the ...
Investors shun German bond auction Financial Times
Fears over UK gilts going unsold First Post
all 4 news articles


Treasurys down as auctions loom
CNNMoney.com - 19 minutes ago
By Julianne Pepitone, CNNMoney.com contributing writer NEW YORK (CNNMoney.com) -- Treasury prices fell Wednesday - ahead of a record $30 billion auction of ...


Los Angeles Times

Weak Jobs Report Lifts Treasurys
Wall Street Journal - 2 hours ago
The government will auction $30 billion in three-year notes Wednesday afternoon, the second of three hefty Treasury note auctions in the first full week of ...
BOND REPORT: Treasurys Down Ahead Of Auctions, Fed Minutes EasyBourse.com
BOND REPORT: Treasurys Move Higher As Fed Buys Mortgage Bonds CNNMoney.com
all 37 news articles


German Government Bond Auction Fails to Attract Enough Demand
Bloomberg - 28 minutes ago
“I would call this a failed auction,” said David Keeble, head of fixed-income strategy in London at Calyon, the investment-banking unit of France’s Credit ...


The $100000 Tuna
Luxist, CA - Jan 6, 2009
It may not look like much but the 282-pound Japanese bluefin tuna shown above brought in more than $100000 at auction recently. Two sushi bar owners, ...
Premium Tuna Sells for $104400 in Auction Wall Street Journal
all 276 news articles


Treasurys down ahead of auctions
MarketWatch - Jan 6, 2009
The notes to be auctioned were trading with a yield about 22 basis points more than regular 10-year Treasurys, said Alex Li, interest-rate strategist at ...
Treasurys Continue to Slide Wall Street Journal
Treasurys down ahead of auctions, ISM data MarketWatch
Treasurys down as auctions loom MarketWatch
all 10 news articles


Sify

India May Delay 3G Auction, Raise Prices
BusinessWeek - Jan 5, 2009
India's long-awaited 3G and Wimax auctions may be delayed yet again, as the government considers doubling the floor price for prospective licensees. ...
mocoNews.net - More Possible Delays For India's 3G Auctions Washington Post
India Telecom Dept: 3G Auction On Track For Jan 30 CNNMoney.com
DoT rejects finance Ministry's proposals on 3G auction TopNews
TeleGeography - RTT News
all 105 news articles

Auctions - Google News

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