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The Downside of Government Real Estate Auctions

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By : Roby Hicks    99 or more times read
We all dream of owning a home. However, with the hard times, it seems very difficult to achieve that dream. In addition to that, purchasing a property seems a very complex process. However, it is not impossible to own a home. Thanks to the various government program that provides assistance and incentives to those who wish to own a property.

Among the things, that the government does is the real estate auctions. Here, properties that were seized, abandoned and forfeited are being auctioned to interested parties. The HUD and the USMS are two of the government agencies that conduct this.

The government real estate auctions offer various advantages. Among them is the inexpensive property to purchase. The properties are priced so cheaply that even those who do not intend to purchase one are considering to bid. In addition, the requirements are not difficult to compile because it is directly filed to the government. Moreover, your real estate agent will assist you with this.

The Department of Treasury handles the auctions. The proceeds from it are given to the funds of the state. This is a great help to the state’s various programs and facilities. The police and the other security services can greatly benefit from this.

There may be several advantages in participating in the said auctions, however, you should also consider the different downsides as well. One of which is the fact that you are purchasing the property as is. This means that you cannot demand the seller to fix any problems related to the property. Although you are able to check the property before bidding, this can be an issue. This can be a problem especially if you need to transfer to the new property.

You have to be represented by a real estate agent as well. This is one of the requirements. If you are joining one that is conducted by the HUD, your agent has to be certified by them. Do not worry though because most agents are. If you do not know anyone, try searching online and you will easily find one.

You have to keep in mind that you cannot be a contractor or a subcontractor if you have access to information relating to the properties being auctioned. In addition, be reminded that it is an auction. You have to register to bid. After the registration, you will be handed a bidding number. The number will be used in the auction so do not lose it. When you bid, it does not guarantee that you will end up owning the home too.

The government also has rights that you have to bear in mind. They can withdraw the sale if they want to. Do not worry because this does not happen without valid reasons.

The government real estate auctions have a lot of benefits. However, there are also downsides to it. You have to think well first before you make a bid. If you think that the benefits outweighs the disadvantages, then go ahead and register. Just make sure that you have a budget for the repairs needed by the property.
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