Buying Distressed and Bargain Properties at Online Auctions- By: Karim El Sheikh
Bidding for distressed homes using online auctions is easy and convenient for many investor/buyers who donít want to take the time out of their busy schedule to attend a real estate auction at the courthouse steps or at some other auction site. With online bidding, you can bid from anywhere at any time. Online auctions may last from days to weeks and you can bid 24 hours a day from your computer whether you are at home or work or out for coffee.
Online auctions give you an opportunity to purchase properties below market value anywhere you choose across the country. Many buyers are purchasing foreclosure properties this way. You can use various website to find the value of these properties. Online auctions open up a much wider range of investments for you by not having to limit your property selection to a 25 or 50 mile radius. Most online bidding sites provide their bidders with all the information they need to make their assessments and crunch the numbers to make sure the investment is a good one. Some sites even allow you to communicate with distressed sellers directly.
What to Do?
Register at the online auction sites you are interested in so that you get up-to-date information about auctions. You can get daily email alerts so you are notified when new properties are listed. Keep track of your property by using a tracking system. If you can drive by the property, it is recommended that you do so. This way you can see the condition of the home and the neighborhood. You may even meet the distressed owner and work out a deal before the auction or find out additional information from a neighbor. Foreclosure properties are always sold as is and are vacant because you are dealing directly with the bank.
Always, confirm the auction dates because auctions get postponed many times on foreclosure properties because the owners and the lenders are working on last minute negotiations to stop the foreclosure auction proceedings. Read the bidding instructions carefully. You will need a minimum deposit usually 10% of the bidding price, and you will have to make payment arrangements. Most sites allow you to pay your settlement online as well if you are the lucky bidder that is awarded the property.
You should also check with the auctioneer or a real estate attorney to find out how you take ownership and possession of the property. Every state has different methods of transferring property ownership. Ownership may be transferred immediately or it may take a few days. Sometimes, it needs to be confirmed by the court. Some states have redemption periods for the owner to buy back the property from you so you should avoid making improvements until the redemption period expires. Also, if the current owners or tenant are still living at the property and the trustee has not evicted them, you will be responsible for the eviction costs. Or you may want to negotiate a lease with them if you are planning on renting the property out.
With the convenience and speed of the Internet you can make a great investment in no time. Online auctions are legal ways to purchase bargain priced properties. Thousands of buyers/investors and sellers are using them in todayís challenging real estate market.
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ForeclosureFreeSearch.com is the site for homebuyers and real estate investors. Search foreclosures, preforeclosures, short sales, and more.