New to Foreclosed Home Auction? Do Not Get Into Bidding War
If you are new to foreclosed home auction proceedings, do not get into a bidding war especially against long-time bidders who have long been using inside information and their familiarity with proceedings and personalities in the auction sector to achieve their goals.
Unless you have done your homework thoroughly, received a rigid training on live auctions or have set a price ceiling for each property that you intend to bid on, it is prudent for you as a beginner to observe and gain experience first.
According to real estate professionals, the frenzied bidding can lead you to a price level higher than current market levels and can lead you to bid on properties that you have not researched before the auction.
These months of January and February, there are public and private foreclosure auctions that will be held. You can observe or participate in them and increase your knowledge and expertise about live and online auctions.
In Nevada and Arizona, Texas-based auction firm Hudson and Marshall will auction off about 127 homes priced between $35,000 and $525,000 in the last week of January. All properties have clean titles and have title insurance policies already paid for.
In Austin, Texas, a total of 1,286 housing units will be sold off at a foreclosed home auction in the first week of February by the Travis County court, marking a two-percent jump from foreclosures in February 2009. In contrast, the number of properties to be auctioned off dropped in Hays County from February 2009.
Another auction firm which has been holding foreclosure auctions is Real Estate Disposition Corporation. It has recently sold off 36 homes in a foreclosure auction in Boston.
Auction experts advise prospective participants to arrive early at the auction site to get a feel of the place and to observe other bidders. Parking will also be less of a problem for early attenders. There could also be important changes announced just before the auction.
Prospective bidders also need to take a look at the properties before the auction as most properties are sold as is. The interiors of some units can be inspected, especially those sold by auction firms, but those sold at public auctions oftentimes are locked and cannot be inspected inside. Auction firms also show the details of their properties on their websites.
In every foreclosed home auction, a deposit of 5 to 10 percent is required. Some auctioneers give 30 days for the winning bidder to pay the balance; others require the full amount the same day or by the afternoon of the following day.
