Looking for property can be tricky. Where do you begin? After you pinpoint an area, do you start calling agents, troll the internet for hours or drive aimlessly through neighborhoods searching for properties?
You may do all of the above but if real estate auctions aren’t included in your search, you could be missing a cost-effective opportunity. A common mistake made by new investors is paying too much for a property. If you pay too much, it can take years, sometimes decades, to recoup the loss.
Real estate auctions, such as those conducted by Auction.com, can help investors find properties that are selling for much less than their estimated value. Auction.com is the nation’s largest online real estate marketplace with more than 30,000 properties available daily on its site.
It doesn’t cost anything to look for properties on Auction.com, just start browsing. When you see a property that you like, save it so it can automatically be added to your dashboard. That way, we can send you status changes and other auction opportunities.
There are two types of properties on Auction.com: Foreclosures and bank-owned properties. Foreclosures are sold primarily at live auctions, except for a handful of states that also sell them online. Bank-owned properties, however, are sold through online auctions. You can learn more about each bidding process at the Auction Help Center.
Regardless of what type of property you purchase, you still need to do your homework, also known as due diligence.
You can start your due diligence on the Property Details Page where you originally viewed photos of the home. Auction.com offers an abundance of complementary information, such as:
- Title and property information
- Photos and maps
- Purchase agreements on bank-owned properties
- Whether the buyer can obtain financing
- Whether the property is occupied
If the home is occupied, Auction.com recommends driving by the property and around the neighborhood to get a rough idea of the home’s condition and value. If the home is vacant, you may be able to schedule a time to inspect the interior. Please refer to the Property Details Page to discover if the property allows for interior access.
You should also get comparable sales, either with a real estate agent or on the internet, and order a complete title report to see if there are any liens or problems with the title. The Auction Help Center outlines in great detail the steps that should be taken during the due diligence process.
Bidding on Properties
Once you’ve finished your investigation and decided to bid on a property, the fun begins. If the property is a foreclosure being offered at a live auction, you will have to attend the event. Visit the Property Details Page for information on where and when the auction will occur. If the property is bank-owned or being offered through an online foreclosure sale, you can bid from the comfort of your home or anywhere you have an internet connection. You will, however, need to register for the auction before it begins. This information is also available on the Property Details Page.
If you win the auction, that’s great! If it was a live auction, there’s typically no closing process. One of the Auction.com staff members at the auction will help you. If you win a property online, Auction.com will help you through the closing process.
Buying a foreclosure or bank-owned home at an auction is a smart option. If you investigate the property and have the funds available, it can provide a tremendous opportunity to find a blockbuster of a deal.
The information in this blog post is being provided for informational purposes only and not for the purpose of providing legal or real estate investment advice, and no liability is assumed by Auction.com (or Ten-X, LLC) with respect to such information.
This article has been contributed by our friends at Auction.com.