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5 Tips for Buying Repo Homes From An Auction

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By : Joseph B. Smith    99 or more times read
For buyers and investors who would like to grab the investment opportunities offered by repo homes, you can do so easily. All you need to do is to look for foreclosure auction announcements. Just like regular auctions, you simply need to place the highest bid for the properties. Although it sounds simple enough, there is the work you need to do before attending such an auction.

Your success at the end of these repo homes auctions will depend on how prepared you are. Consider the following tips:

Tip 1: Know When to Bid

You can expect these auctions to be well-attended especially since most participating lenders offer huge discounts just to get these properties off their books. For this reason, you need to learn about perfect timing. For instance, if a property is getting much attention, you should only bid at the end. But make sure, you are still within your budget. Trying to outbid the other bidders at the start will only hike up the selling price.

Meanwhile, some bidders prefer bidding for the first couple of properties. These homes are usually sold for less since the other bidders are still testing the water and getting a feel of the pricing trend before going all out.

Tip 2: Look and Act the Part

It would probably make you feel more confident if you try to dress as well as act the part of a serious and seasoned bidder. Other bidders might even be intimidated to bid against you. Of course, your actions should be supported by facts and not merely posturing. Make sure all your word and actions are based on the information you gathered during the research part of your preparation.

Tip 3: Take Time to Check the Properties

Although the foreclosure auction announcements might come with detailed description of the properties, nothing beats checking the repo homes out personally. Try going to as many open houses as you can. Also, do not be content with just looking at the home, you might as well check out the neighborhood while you are there. Organize all the photos and information you gathered at these open houses and file them for easy reference later on. You can always choose to bring these files to the auction to refresh your memory.

Tip 4: Bring A Friend

If you have a contractor friend, you can ask him to accompany you to these open houses so he can give you an idea of how much it will cost you to fix up the place. Professionals also have the skill, experience and knowledge to spot problem areas in a home and he could give you helpful advice as well.

Tip 5: Know the Comp Prices

At the end of the day, it is all about the price tags. You should make sure you check the selling prices in the neighborhood of the repo home you are interested in. This way, you can make a bid which is not too high or too low and will allow you to enjoy savings as well as good return potential.
Attending foreclosure auctions is one of the ways you can grab the best deals offered for these repo homes. will teach you what you need to buy repo homes, so you can come out of these auctions as a sure winner.

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