Foreclosures – Visit an Auction or use a Realtor?
Everyone is aware of the current real estate crisis and increased foreclosures going on in the States. But what many people may not be aware of, is that there are some great values available if you are looking to purchase a house or property. Whats different now then in the past, is that not only are numbes of foreclosed at all times highs but the quality is much higher as well.
If you are considering buying a foreclosed home from a government auction then you couldn’t be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.
The advantages of buying a foreclosed or pre-foreclosed property are:
- Price is the number one reason to purchase a foreclosure.
- Many of the homes are in great condition for what you pay.
- The selection range of home available to choose from is extensive.
- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).
- Some insurances are optional. It could save you hundreds a month.
- Good property investment to rent or resell.
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- Need to be mindful of existing liens or taxes that have not been paid on the property.
The main caution is to properly check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash handy (who does) that makes your profit potential much greater.
Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used.
