Get Best Deals For Buying Property at Auction
Buying a property at an auction differs significantly from traditional property buying process. A home owner or home loan borrower might default repayment of home loan or Loan against property and the property has been taken back by the lender in foreclosure. Once the lender owns the property, it can choose to sell it with the help of a real estate broker – or through an auction company. Buying property at auction can often produce a bargain purchase, but equally there are many pitfalls when buying in this manner.
Buying and selling old houses in an auction is a fairly young concept in India. The price tag on an auction property is much lower than that in a regular market. Buying property at an auction is a good option to buy property, but there are certain safe-guards that you need practice.
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Tips for buying a property at auction
- Research about property: The price tag on an auction property is much lower than that in a regular market but it is recommended to make good research about the property. Check with the county recorder or local title company for a list of properties currently in foreclosure. If you don’t inspect yourself, or appoint a qualified advisor to do so, you could end up in buying a non-productive foreclosed house or property. Inspect the house and estimate your total expenses including the fixing and the likes. This is to know whether you’re buying a great deal home. You can have a look at your desired property with the permission of the seller/bank before the bidding. You can bid in accordance with the property location, age of the building locality, and many other factors.
- Know your price limits: The price can go up to any extent depending on the property’s condition, maintenance, and its location. Work out actual costing carefully, and don’t forget to include financial arrangement fees, lawyer’s fees, and if you are planning to sell straight away, your selling costs too, such as Agent’s fees and any loan repayments. Know how much you are willing to spend and stick to it.
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- Obtain copy of auction catalogues: Check with the county recorder or local title company for a list of properties currently in foreclosure and establish a list of the properties to bid on. Stick to your price limit. If the deal isn’t right for you, be prepared to walk away.
- Auctioneer is not your friend: Don’t feel as if you have to buy something just because you are ready. There is always another auction next week or next month. The auctioneer is not your friend. He is acting for the seller, so treat them with the utmost care. It is the auctioneer’s job to relieve the buyers of as much money as possible, and you’re one of the buyers. Know how much you are willing to spend and stick to it.
- Get professional advice: A surveyor should inspect the property so that you know exactly what you are getting. Don’t bid at your first auction. Go to two or more auctions to get a feel of the market. Ask your solicitor to look through the legal pack of the property you are interested in buying.
Generally, there are no other liens on the property of bank foreclosures which is also the other reason why it is very easy to purchase. In purchasing homes or properties form bank foreclosure, you can always negotiate with the bank on the manner or method of payment. Always inspect the house and estimate your total expenses. This is to know whether you are buying a great deal home. Hire someone with an expertise with home foreclosures and don’t forget to know your legal rights as a consumer to prevent future conflicts. Don’t bid at your first auction. Go to two or more auctions to get a feel of the market.
