Tips Before Bidding On Foreclosure Sales Virginia Auctioneers Offer

By Anna Robinson


If you are house hunting, you know how expensive real estate is, and how difficult it can be to get the kind of property you really want and stay within your budget. Certain banks bundle the foreclosed inventory they have and offer them to the general public at auction. Purchasing property at one of the foreclosure sales Virginia auction houses promote can be great opportunities for those who do their homework.

Home buyers who have never been involved in an auction or considered foreclosed real estate before need to do some serious research before beginning the bidding process. You first need to understand that there is a difference between bank or government owned property and real estate that was seized by an agency such as a sheriff's department and may be auctioned on the courthouse steps.

Before most banks offer properties, they make sure the titles are clear and all back taxes are brought up to date. Sheriff's sales, on the other hand, are sold with any and all encumbrances. It is up to buyers to search the title and pay any delinquent taxes. If you are the high bidder, you must pay for the property in full right then.

If you are interested in a bank owned property, inspections are your responsibility. When the real estate is occupied, by the current owner or a renter, you may not be able to do more than a drive by inspection without risking a trespassing charge. Working with a Realtor can give you an advantage because the agent may actually have been in the house.

Some inexperienced bidders get intimidated by the quickness of a live auction and prefer to have their Realtors do the bidding on their behalf. If you would rather do your own bidding, you should consider attending a few auctions just to see how they are conducted before you participate. If there is a buyer's premium added to the high bid, you need to keep that in mind.

Getting your finances in order before you attend an auction is important. Most auction sale contracts are not contingent on you being approved for a mortgage. If you are unable to perform, the auctioneer has the right, which is usually exercised, to turn your earnest money deposit over to the seller. Published minimum bids are helpful because it makes it easier for bidders to determine how much the bank expects for a property.

A lot of investors follow multiple property foreclosure auctions because most of the properties are offered well below market value. You shouldn't be discouraged if you are outbid by someone who is more experienced than you. It is usually a good idea to be willing to bid on several properties in the hope of getting one of them instead of setting your sights on the one you fell in love with.

Foreclosed real estate is a good option for home buyers who are willing to do their homework. Having a Realtor makes the process easier. You may find yourself living in the house of your dreams with a mortgage you can afford.




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