I’m know you’re in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what’s different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.
If you are considering buying a foreclosed home from a government auction then you couldn’t be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- More often then not the properties are in very good condition relative to price.
- Variety and selection is better then it has ever been.
- No middle man (Realtor) to have to go through or additional fees to pay (although you should consult with someone along who can inspect the home(s) for you).
- Some insurances are optional. It could save you hundreds a month.
- Good property investment to rent or resell.
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.
The most important thing is to make sure that the home you’re interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.
Government auctions happen everying held every week throughout North America. You can locate detailed information regarding auctions on the web. Some sites will even show you previews of the houses that will be available at the upcoming auctions. Buying an estate through a government auction could be very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding only at first visit to a government auction. You should be acquainted with how government auctions work before finally deciding to buy your own home.
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