If you are looking on the Arizona housing market for some really good deals it’s in your best interests to check out real estate auction! Homes are typically put on auction when the previous homeowner was unable to sell it and the lender has taken the property back as a foreclosure! The lender then chooses to sell the real estate through a broker or through an auction. If you want to get in on the action of real estate auctions here are a few tips to get started!
The first step is to research the property in detail; get the specifics, such as its size, amenities, how much is owed against it, and what the opening bid is. To find out whether the house is priced right, compare the sales price of similar properties in the area to get an idea of the property’s worth. Comparing prices of homes within three miles of the property will give you the most accurate comparisons.
Once you know the property’s approximate value, it’s necessary for you to set your price limit. In excited situations such as an auction, it’s easy to get carried away and bid beyond a price that’s comfortable for you. Another important part of setting a price limit is preparing yourself to be willing to walk away from the sale. Even if the property is exactly what you want, it’s not a deal for you if it’s out of your price range. Although it may be disappointing to lose the property, keep searching for others and soon you’ll find the perfect deal for you.
Buying a house at auction can be great way to purchase foreclosure or otherwise get cheap real estate for house flipping. Auctions, however, can be a little bit complicated, so it is important to understand the details before you try to dive in. If you are not looking to get directly involved in real estate auctions, you can use a bidding service that will allow you to bypass much of the technical details, otherwise, read the information below to help you realize the full potential of real estate auctions.
First of all, there are usually 3 different types of housing auctions. Absolute auctions ignore the final price, automatically guaranteeing the sale to the bidder that offers the highest price. The second type of auction uses the minimum bid, which sets an established and published price. Since the minimum bid is already set, the seller assumes less risk. The last type is the reserve auction. This allows the seller to reject or to accept the offer after the bidding is over. The reserve auction allows the seller to be more in control of the final price.
Auctions for real estate are usually held by a professional auction service company or by the government. A bank, municipality or other government agency may host auctions in order to recover taxes and to help offset the expenses of maintaining a foreclosed home, which can be significant. An auction company can also hold an auction under contract with a real estate agent, bank, a family overseeing a loved one’s estate or a seller who needs to sell quickly. The auction company typically earns a percentage of the final purchase price.
Housing auctions in Arizona offer huge potential for savings compared to normal home sales, especially if you are a real estate investor! It’s true that many people don’t want to purchase a home without knowing anything about it but this is the reason for the huge savings. While you can’t have an auctioned home inspected before purchase you can still gather as much information about it beforehand!
Go visit each house and take a photograph. However please remember that not all of the houses are vacant, so don’t disturb the people living in the property by poking around the house without consent. While there, take a look around and see what type of condition the home is in from where you are standing. Before you leave, take a look at the roof, especially right at the very top and see if it looks tattered. You may also want to talk to the neighbors and see what they have to say about the history of the home and neighborhood.
If you are a real estate investor who wants to make a number of purchases, but can’t cover all areas at once, you may be able to get the assistance of a real estate agent on your team to help you do all of the footwork. Plus, there may be a time where it is critical to have someone who is at a desk to answer last minute questions you may not know the answer to while you’re standing at the courthouse steps. Then when you sell the property, you already have an agent you can trust to put the house on the market.