subject: Using A Property Auction Site To Buy A Home [print this page] Buying a home is a major decisionBuying a home is a major decision. Perhaps you have been saving for a while now, and you have enough for a down payment. These are exciting times for you. Sometimes there are opportunities to purchase homes in unconventional ways that might end up costing you less. An example of this is purchasing a home at a property auction site. Purchasing homes from auctions often end up costing less than going through a normal realtor situation.
There are several things to consider before purchasing a home from a property auction site. Research is essential. You should try to visit the home in person if at all possible at least once. You should find out if there has been an inspection, and if there has, get it before making any purchases. You should also consider your budget.
Visiting the home in person is a very good idea because often things might be left out if you only use pictures from a property auction site. It is not that the group will intentionally leave things off, but there is no way to include every inch of the home, and something that bothers you might not bother everyone who looks at the home. Sometimes you will run into homes that have been foreclosed. Because of this, it is likely that there will be quite a few problems with the home.
Some may just be on the surface, and others might be internal problems with plumbing and electricity.
It is important to know if the home has been inspected because having the inspection results will help you to know how much money you will need to put into a home that you purchase from the property auction site. If you are not able to see the home in person then this is essential for you if you want to consider a home.
Your budget is of course a consideration. You may only pay $30,000 for a home that is a foreclosure, but you may have to put at least that much into it. As you are looking at what to bid, you will need to take the inspection results as well as your visit to the home into consideration as you decide what work would need to be done immediately as well as what you want to change over the upcoming years.
There is no guarantee that you will win the home at the auction. It will really depend on what you are up against in the bidding. By knowing how much work will need to be put into it, you can keep bidding up until you are to your budgeted amount. At that point, you would be wise to stop unless you have reserves that you decide you can add to it.
