subject: Foreclosures - Visit An Auction Or Use A Realtor? [print this page] I'm sure you're aware of the real estate and foreclosure crisis going on in the United States. Because of this, there is an excess of homes on the market. Obviously some properties will be run down in unappealing neighbourhoods as usual, but what's different this time is the surprisingly increasing number of well kept and even executive style properties that are up for sale for pennies on the dollar.
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.
Here are some advantages to purchasing a foreclosed or pre-foreclosed home:
- Price is the number one reason to purchase a foreclosure.
- More often then not the properties are in very good condition relative to price.
- The selection range of home available to choose from is extensive.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- Insurance is optional. Results in additional monthly savings.
- Landlord or resell venture opportunities.
- Less risky then the stock market, as you own something tangible
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- There may be existing liens or unpaid taxes against the property.
Making sure that the foreclosed home you're interested in is clear of all debt is one of the most important things you should do homework on. After that, find out what types of payment plans are allowed, and have any required financing in place beforehand. Obviously any additional savings you may have will help.
Government auctions happen everying held every week throughout North America. You can locate detailed information regarding auctions on the web. Some sites will even show you previews of the houses that will be available at the upcoming auctions. Buying an estate through a government auction could be very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding only at first visit to a government auction. You should be acquainted with how government auctions work before finally deciding to buy your own home.
