These day foreclosure is on the tip of the tongue of everyone. For buyers the cheapest way to find homes and real estate is through bidding in foreclosure event. Foreclosure properties get auctioned by the county courthouse. What happens is the properties that were foreclosed will be auctioned by the lending company that owns them.
Everyone wants to know how to buy foreclosures. More often than not the price is the market value of the property when it was foreclosed. The trick here is alertness. Typically the auction doesn’t have many people attending it and when there will be no bidders the property goes to the lender itself.
Prior to you countering a bid, make sure to study the market first, in particular the appraised value of the home. How far over the actual number value does the house stand going for, and could you live with paying that much?
Once you negotiate in buying a home, you must have an edge over other bidders. You must gain something aside from a place to live. Remember that a home is an investment, and if you find twenty years down the road you must sell, you want to make back what you spent and more.
Be familiar with the market where the property is located in. Talk to real estate agents, get computations, find out how much inventory is on the market and take a good look at the neighborhood. If it is going to be a rental, do a market survey so you know what to expect in terms of rental rates.
Another thing that is important you need cash in hand to bid at a foreclosure auction. The person running the auction will be requiring you to show some cash or cashiers check in order to verify your bidding limit. Therefore you have to bring your own money or a partner who is willing to put up the money.
You want to know exactly what you are bidding on. What liens, mortgages and other items might affect the title to the property. Without this information you could be bidding on something that has no profit potential or even worse, could be a money loser right from the start.
If the bid doesn’t go your way, do not feel discouraged and disappointed. It’s best to put your energy into finding another home you can afford and will love. As with any endeavor, investing in foreclosures takes time, effort and money so take your time. It’s better to be sure today than be sorry tomorrow.