Investors are looking for great buys in the real estate marketplace and great values can be found in most markets across the country. Auctions are becoming much commoner. It isn't rare to see auction firms aggressively marketing the opportunities present at their affiliated auctions. The wide range of auction opportunities are appealing to not just seasoned real estate investors but also owners and newbie investors. There are a few different types of auctions being conducted today.
The first type of auction is the normal real-estate auction. These auctions generally are comprised of bank repossessed houses that have been repossessed for non-payment of a mortgage. Frequently the bank will try to sell these properties on the market first and will employ an auction company as a final resort. It's really important to remember that the auction company is not the owner of the property and the owner most likely desires to approve the sale of the property. This frustrates many buyers as the high bidder is not always going to be permitted to purchase the property at the high bid cost. Read the conditions of all auctions prior to bidding.
The second sort of auction is the foreclosure auction. Many states and localities utilize a foreclosure auction or sheriffs sale auction as the means by which ownership is passed from a borrower to the lien holder when a mortgage is in default. These auctions usually happen on the steps of the courthouse and are open to the general public. Real estate investors should research completely the laws of the area as many foreclosure auctions have a redemption timeframe in which the former owner can redeem the property after the auction.
Finally, government entities can auction property as a result of the police power of the state. This occurs in examples such as IRS tax sales and tax lien sales. Tax auctions are often a great chance to get property significantly below market value. Again, buyer beware where participating in government auctions. A consumer should be completely well informed about the property as well as the auction procedures of the sale.
Auctions present an amazing opportunity for investors and home purchasers. Understanding the rules and laws as well as the local real estate market will help buyers reduce the inherent risk associated with purchasing property at these kinds of events. Read the fine print on all documents and sites as well as disclosures provided by the auction company. Once well prepared, a consumer can proceed with finding a good deal.
The first type of auction is the normal real-estate auction. These auctions generally are comprised of bank repossessed houses that have been repossessed for non-payment of a mortgage. Frequently the bank will try to sell these properties on the market first and will employ an auction company as a final resort. It's really important to remember that the auction company is not the owner of the property and the owner most likely desires to approve the sale of the property. This frustrates many buyers as the high bidder is not always going to be permitted to purchase the property at the high bid cost. Read the conditions of all auctions prior to bidding.
The second sort of auction is the foreclosure auction. Many states and localities utilize a foreclosure auction or sheriffs sale auction as the means by which ownership is passed from a borrower to the lien holder when a mortgage is in default. These auctions usually happen on the steps of the courthouse and are open to the general public. Real estate investors should research completely the laws of the area as many foreclosure auctions have a redemption timeframe in which the former owner can redeem the property after the auction.
Finally, government entities can auction property as a result of the police power of the state. This occurs in examples such as IRS tax sales and tax lien sales. Tax auctions are often a great chance to get property significantly below market value. Again, buyer beware where participating in government auctions. A consumer should be completely well informed about the property as well as the auction procedures of the sale.
Auctions present an amazing opportunity for investors and home purchasers. Understanding the rules and laws as well as the local real estate market will help buyers reduce the inherent risk associated with purchasing property at these kinds of events. Read the fine print on all documents and sites as well as disclosures provided by the auction company. Once well prepared, a consumer can proceed with finding a good deal.
About the Author:
Tax foreclosure auctions are a great spot to purchase property at below market pricing. Tom Webb a local investor and real estate agent provides details on Michigan Tax Sale Auctions including the Wayne County Tax Saleat his internet site.
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