Foreclosures - Visit an Auction or use a Realtor?
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Everyone is aware of the current real estate crisis and increased foreclosures going on in the States. But what many people may not be aware of, is that there are some great values available if you are looking to purchase a house or property. Whats different now then in the past, is that not only are numbes of foreclosed at all times highs but the quality is much higher as well.
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.
The advantages of buying a foreclosed or pre-foreclosed property are:
- The main advantage in purchasing a foreclosed home is the below market price.
- Many homes are in good condition for much less than their market value.
- Many more different types of homes to choose from then in the past.
- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).
- Insurance is optional. Results in additional monthly savings.
- Good property investment to rent or resell.
- Less risky then the stock market, as you own something tangible
Disadvantages:
- Borrowing money may be more difficult, unless you have strong credit.
- There may be existing liens or unpaid taxes against 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 regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used.
