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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:

Auctions - Google News

American Foreclosure Hits Bottom With Tower Auction in Atlanta: Mortgages - Bloomberg


American Foreclosure Hits Bottom With Tower Auction in Atlanta: Mortgages
Bloomberg
Atlanta's office market is a victim of overbuilding and inflated real-estate prices fueled by issuance of commercial mortgage backed securities that peaked in the US at $232 billion in 2007. While investor demand for property debt surged last month by ...

Will they or won't they? - Sydney Morning Herald


Will they or won't they?
Sydney Morning Herald
The clearance rate was 58 per cent for the 101 auction results reported to the Real Estate Institute of Victoria. The outcome of another 36 sales is still unknown. Many commentators are tipping the RBA will cut rates by 0.25 percentage points.

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Market middle ground proving elusive - Sydney Morning Herald


Sydney Morning Herald

Market middle ground proving elusive
Sydney Morning Herald
Real Estate Institute of Victoria spokesman Robert Larocca said the level of new stock coming onto the market for February was surprisingly high. ''We've got 10-15 per cent increases in stock levels for the first few weeks of February compared with ...

and more »

Got $1.8M? This Harrison estate is up for auction - The Journal News | LoHud.com


Got $1.8M? This Harrison estate is up for auction
The Journal News | LoHud.com
Its owner — international real estate developer Neill Bernstein, dubbed “Cape Town's Donald Trump” — has lived there for several years but now is returning home to South Africa. Misha Haghani, founder of Paramount Realty USA, is handling the auction ...

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Tucson resort avoids auction block, for now - Arizona Daily Star


Tucson resort avoids auction block, for now
Arizona Daily Star
Starr Pass Resort Developments, the owner, took on the debt before the real estate bubble burst and the property, which opened in 2005, was only just getting its footing when business and leisure travel screeched to a near halt.

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Fannie Mae's Fire Sale - Barron's


Credit Union Times

Fannie Mae's Fire Sale
Barron's
How to buy a cut-rate rental property. Fire sale! The Federal Housing Finance Agency has approved a big residential real-estate auction at Fannie Mae to help the mortgage giant unload its inventory of 122616 foreclosed houses. For the first time, ...
Tales from the Field: A Homeowner Who Fought Foreclosure and WonRisMedia.com (press release)

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Concierge Auctions to Sell Premier Residences at Auction Within Exclusive ... - MarketWatch (press release)


Concierge Auctions to Sell Premier Residences at Auction Within Exclusive ...
MarketWatch (press release)
The auction will be conducted in cooperation with Rivers To Peaks Real Estate ~ Big Sky Real Estate. "The seller developed these idyllic vacation homes ideally situated in the heart of the most luxurious amenities these communities offer," stated ...

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Gold Coast back on the road to paradise - The Australian


Gold Coast back on the road to paradise
The Australian
It was - as she told her children - excellent shopping when the biggest single auction of real estate nationally was held on the Gold Coast last weekend. And the buyers, many of whom had flown in from interstate, were out in force picking up properties ...

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Yarmouth Route 28 motels sold at auction - Wicked Local


Yarmouth Route 28 motels sold at auction
Wicked Local
The twice-postponed auctions drew a mixed crowd of lawyers, real estate brokers, neighbors and a town planning board member. The motels have been the focus of a civil lawsuit for more than a year. The town sued the motels' former owner for violating ...

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Concierge Auctions, the Nation's Premier Luxury Real Estate Auction Firm ... - MarketWatch (press release)


Concierge Auctions, the Nation's Premier Luxury Real Estate Auction Firm ...
MarketWatch (press release)
24, 2012 /PRNewswire via COMTEX/ -- Concierge Auctions, the nation's preeminent luxury real estate auction firm, auctioned high-end properties throughout 15 states in 2011. The year proved successful for the NYC-based company, as the firm produced a ...

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