Are Real Estate Auctions Right For You
The lenders unwillingness to adjust the prices on their properties is affecting us greatly. We are getting consumed by all the vacant homes.
The lenders out there will have to learn to take the bite. Do not worry they are very creative and will get their money back from you another way.
Many prospective home buyers and investors have been trying to get great deals at auctions. I wonder why banks are sending a great deal of their properties to auction?
Live auctions have generally been a great way to sell that overstocked inventory. Everything from junk to real estate can be sold at auction.
The simplistic nature of an auction is it's greatest attribute. They are so simple to setup and finish that you could almost turn your head and it will be over. Just like that you have missed that item you wanted to bid on.
A great deal of the foreclosure properties all around are going to your local auction house. The lenders believe that they will be able to get everyone hyped out to bid up their decreasing value properties. I have personally seen this number of times. Surprisingly people do bid up these properties significantly higher than they could purchase normally without the auction house fees included.
The majority of auction houses have a fixed percentage of the final selling price of the auctioned products or homes to be received as their payment. I have seen the typical amounts to be around three to five percent to be added to the winning bid.
When placing your first bid at a real estate auction always remember that there are additional cost on top of your bid. As rule of thumb I usually calculate about an extra ten percent in additional costs to be safe when calculating my highest bid price.
Today almost everything we read and sign have disclaimers throughout. I particularly like the auction books. They show you so many great deals in the front. When you flip to the rules and regulations section those great things don't actually exist.
You would think that the minimal bid would be the lowest acceptable price for the seller, but no it is only a teaser. In the minds of these lenders they would not sell their properties at that low of a price.
I always thought the when you go to an auction if you bid the highest you win. I wish that was actually true. Many of the auctions have all things these super low starting points. It seems that they always forget to mention that there is a reserve price in the front of there books. Basically those numbers mean nothing and are just a fantasy. The lenders still get the price they want or they don't have to sell.
I really irritates me that auctions are for the sellers and don't care about the buyers. I do not like the ideas around reserve amounts but as long as they are discreetly exposed I can deal with it. That one that pisses me off is the short period after the auction takes place the seller can reject your bid. I can meet the reserve and win the auction and still I am not the guaranteed winner.
I can see that the auctions are in the favor of the seller. One of things that I hate the most is wasting my time. They make you fill out forms then make you pre-qualify to bid. If I knew my final bid really meant I won that would be different.
I do think that the experience of an auction should be felt once. You never know you could get that deal.
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by: JoeMack
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