When you invest in auction home foreclosures you get the opportunity of saving money and gaining equity at the same time. The first thing any buyer should take care of is his own finances to determine if he is indeed capable of purchasing a distressed property.
Properties sold through auction home foreclosures are all cash sales and so buyers should ensure that there is enough cash to cover the price of the home as well as the repairs and other incidental expenses. Once this issue has been addressed the buyer could then proceed to finding the ideal home auction to participate.
Home auctions are public affairs that are publicized weeks before they are held. Interested parties can simply walk up to any real estate business and ask for a list of scheduled home auctions. They may also log on to the Internet and seek out listings of scheduled home auctions. Newspapers will also carry schedules and venues of home auctions.
If it will be your first venture into foreclosure auctions you must first familiarize yourself with the prevailing rules and guidelines in place for public auctions. Auctions for bank foreclosures may have certain differences with government foreclosure auctions so it is best to learn about the types of home auctions.
In auction home foreclosures, bidders are not allowed to inspect the home thoroughly and this can be a disadvantage. These homes are sold as is so there is no telling what sort of damage it may have sustained previously. What buyers can do is visit the home to assess its condition from the outside. Buyers may also speak to neighbors to gain insights on the home and the general neighborhood where it is located.
The best way to prepare for the actual auction is to attend other home auctions first to get a feel for the proceedings and understand how they are conducted.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.