One of the main reasons why home buyers are tempted to buy a house at auction, is the chance of owning the property for a price lower than market value, regardless if they are buying it for themselves or as an investment.
The major benefit of buying a property at auction is getting it at a lower cost, but understand the reason “Why”, is the part that you have to understand because not all properties held in auctions are the best deal. The lower market value of the property involves a lot of of risks.
Properties end up at auction because of the any of the following scenarios. One, after the bank files a notice of default with the county recorder because the owner failed to pay the mortgage for several months or was not able to to fulfill their obligations to the lender after a renegotiation. Another scenario is when the property is seized by the tax authority (not the bank) when the homeowner failed to pay the property taxes.
It is helpful when you are familiar with the terms and conditions if you plan to buy a house that is being auctioned. For expert advise Great Florida Homes Team can guide you through the entire process.
The risk is high when you buy a house at auction, compared to buying a property through a real estate professional. If you can’t afford the risk of buying a property in poor condition, stick with auctions that allow you to inspect the property before bidding, so you are aware of what your cost to repair is going to be. Also be sure to perform a lien search to see what else comes with your troubles. Without this information, it can be hard to know what you’re getting into, until after you’ve become the new owner and then it might not be such a great deal!
Consult a real estate professional before buying a home at auction. The GreatFloridaHomes Team has plenty of properties that will likely give you less headaches in making the house, your home.