Buying a Home at a Foreclosure Auction
If you are considering buying a foreclosure, you may want to look into visiting a foreclosure auction. While this avenue for buying a foreclosure may seem intimidating, it can be one of the best ways to get a great deal on a foreclosure.
What to Do Before Going to a Foreclosure Auction
- Search for foreclosures
Search for foreclosures by visiting a site like, Realty Trac. Once you find some that you like, you can go to the property and look to determine if you are still interested.
- Search for foreclosure auctions
You can also look for foreclosure auctions in your area first. You can do this with a simple search online. Once you’ve done that you can contact the auction and ask about expected foreclosures up for auction at the next event.
- Find out market value
You want to make sure you are getting a good deal so look up the market value of the property. This is how much the house would be sold for if put up for sale rather than foreclosure. Compare the market value to how much the house will start off going for at the auction (which in some instances is how much is still on the lien and any outstanding fees associated with the house such as back taxes).
- Decide what your maximum bid will be
Once you have researched the property, determine how much you want to bid. Have a figure in your mind and commit to it because you may get caught up in the auction and end up purchasing it for more than you brought with you. Keep in mind, for some foreclosure auctions you will need to bring cash with you.
- Call ahead
It’s important to know that sometimes the owners of foreclosed homes will pay on the home, which will postpone the auction date. Call the auction before you head out to make sure the property you want will still be auctioned off that day.
Buying foreclosures means researching and take a chance on a property, but it could end up being one of the best investments you make if you find a good deal.
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