How to Purchase Bargain Properties at Auctions

By shaye • July 15th, 2010

Do you have hopes of investing in profitable properties or just purchasing brand new homes at bargain prices? If this is the case, you should take property auctions unto consideration.

Properties that are sold at auctions are oftentimes owned by lenders of mortgage after repossessions or have been vacant for quite some time after its owner had passed away.

Whatever the case, owners have put these properties on auction for quick sales, which could lead to several good deals on market value.

Auctions mostly cater to property professionals instead of the public, in general; awareness of such auction houses and advertising thereof is quite restricted.

One great place to begin looking for them would be through telephone directories, Yahoo or Google searches or the yellow pages.

One other great tip would be to keep a look out for signs outside of homes. If the sign says anything about an auction, just call the provided telephone number. You could either contact estate agents acting for auction houses or you could contact auction houses directly.

If you end up contacting estate agents, ask for the auction house’s contact details. Estate agents might be reluctant in doing this; therefore, being persistent would be worth it.

The minute you get in contact with an auction house, you can ask to be placed on the mailing list. Even though you might get charged for doing this, you can start receiving details on properties that are due to be on sale.

Once you have identified a property you hope to purchase, you have to arrange the finances. Most people will have to approaching mortgage lenders and it would be essential to do this way in advance of any auction.

Keep in mind that the minute a bid is won; you will be bound to buy the property legally and will have to pay up within an amount of days.

Mortgage lenders will require basic valuations of this property; however, it would be wise to invest in complete surveys since properties might be at auction because of structural problems that basic surveys were not capable of picking up.
Before you bid for the property you want, you might want to go to several auctions first to get better ideas on this experience.

Set price limits for yourself and never bid beyond that limit. After valuations, you should have good ideas of market values.

If the bid succeeds, you will be bound to buy the property legally and you will have to give a 10% deposit on the selling price of the property. You will have to sign the contract and will be bound legally to complete it on the same day.

Lastly, you will have to pay the rest of the overall selling price in the agreed period.

Congratulations! You just got an auction deal!

The current real estate market represents a great time to buy real estate. It is a buyer’s market but to take advantage and realize the benefits of that buyers market a person actually has to purchase real estate. If you have ever thought about purchasing real estate for either investment or your own residence now is the time. The first thing you need to do is find a knowledgeable Realtor and explain your goals. Realtors are tuned into the market and can help you obtain financing if needed, find the right home and ensure you get a good deal on it. Happy hunting!

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