Foreclosures - Visit an Auction or use a Realtor?
I'm know you're in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what's different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.
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.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- More often then not the properties are in very good condition relative to price.
- Many more different types of homes to choose from then in the past.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- Insurance is optional. Results in additional monthly savings.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky than trading equities in the stock market.
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.
The most important thing is to make sure that the home you're interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.
Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment. - 23208
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.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- More often then not the properties are in very good condition relative to price.
- Many more different types of homes to choose from then in the past.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- Insurance is optional. Results in additional monthly savings.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky than trading equities in the stock market.
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.
The most important thing is to make sure that the home you're interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.
Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment. - 23208
About the Author:
To find an updated listing of foreclosures/pre-foreclosures on the top government auction sites check out government auctions review or Bank Foreclosures & Pre-foreclosures
posted by X - Men @ 5:20 AM
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