WAAAAY back in 2008 I got daily calls about how to buy a home through auction. There are all kinds of auctions… Ballroom auctions, onsite auctions, auctions at the steps of the courthouse and nowadays we see online auctions or bidding sites.
For a little history, you can stop by this ancient blog post from those olden days about buying a home at auction, but here’s the quick “down and dirty” for you of things you should know…
- Don’t be intimidated.
- Hire an agent.
- Expect to pay a buyer’s premium on top of the agreed sales price of 5-15%.
- Know that most homes have a “reserve” meaning they are not selling for “whatever they can get” but that there is a bottom line that they will accept.
- The “bottom line” is called a “RESERVE” in auction terms and it’s usually undisclosed.
- The above means the advertised price is usually a teaser… it’s a starting point.
- Usually the owners have a darn good reason for selling like this… usually the property is a disaster.
- Because it’s a disaster it may not qualify for a normal “mortgage” or home loan. You may have to finance with cash or a renovation loan.
- Often you can negotiate a deal which allows you to purchase using a home loan.
I suspect that answered many of your questions…. if not, check out the old post, and know I am here for you. No matter what you want to buy (homes and land) or how you want to buy it. To find out about buying under more “normal” circumstances, start with this post (Typical Contract Terms)… and follow the links to the types of home sales that are of interest to you. Or, take the short cut, and just call me. All this information and more is stored in my head…. after all, that is why you hire a buyer’s agent.
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