One result of the real estate plunge is that there are more choices than ever in real estate foreclosure auctions. Although the economy may be bad now, it’s certain to rebound sometime in the future. Unless there’s a massive drop in the American population, people are still going to need places to live, which means that homes will always be needed, even if they aren’t worth as much as they once were. Some people still consider properties as valuable as gold.
Although you could subscribe to online services that let you know when foreclosure auctions are going to happen anywhere in the country, you are asking for trouble buying property in a market you know nothing about. For example, it’s no good buying a mini mansion in South Carolina if it’s located in a town hit by a hurricane last year. What you need to do is know what specific market you want and then wait for a foreclosure auction in your desired area.
In order to not become bankrupt in anything having to do with real estate, let alone foreclosure home auctions, you need to really study your market and know your budget limits. Write down all of the qualities of the ideal property you are looking for and use that as a guide to keep you on the road to success in real estate. On this list, include where you want the property to be, how much and whether it should have any extras.
Don’t participate in a real estate foreclosure auction just because you feel as if you have to be playing the market every moment of your life. You have to wait for just the right property. You’ll know it because it will match your written ideal as closely as possible. You can’t be swayed by dollar signs, thinking that you can soon sell a foreclosed home for twice what you bought it for. Plan on keeping the property for a couple of years, at least.
Because you are making such a huge investment, you don’t want to completely trust the words and reports of others. You need to go into the property and check it out yourself. Even if there has been a detailed inspection report from the bank or creditor’s evaluator done, don’t rust it. Get your own home inspector to check it out. In this way, you will know how much you should bid or even if you should bid at all.
Depending on the foreclosure laws in the state where the auction is taking place, you may have to pay for the property in full. Keep that in mind when determining your bid.