I'm know you're in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what's different during this crisis is the quality of foreclosed homes and neighborhoods they reside, has improved drastically. Even nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.
There are some great values out there but in order to take advantage of them you should first be aware of the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method of using a realtor.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- Price is the number one reason to purchase a foreclosed home.
- Many of the homes are in great condition relative to what they cost.
- The selection range of home available to choose from is extensive.
- No realtors to pay or other agency fees (although you should still get advice from someone who knows something about real estate).
- Insurance is optional which if not required will provide an additional monthly savings.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky then the stock market, as you own something tangible
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- You need to be aware of any existing liens, judgments, or unpaid taxes still on the property.
Check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash to put down it makes your profit potential more appealing.
Government auctions are being held throughout the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet. Most listings provide informative details on each home or property. Purchasing a home through a government auction can be a very rewarding experience and doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.
There are some great values out there but in order to take advantage of them you should first be aware of the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method of using a realtor.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- Price is the number one reason to purchase a foreclosed home.
- Many of the homes are in great condition relative to what they cost.
- The selection range of home available to choose from is extensive.
- No realtors to pay or other agency fees (although you should still get advice from someone who knows something about real estate).
- Insurance is optional which if not required will provide an additional monthly savings.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky then the stock market, as you own something tangible
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- You need to be aware of any existing liens, judgments, or unpaid taxes still on the property.
Check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash to put down it makes your profit potential more appealing.
Government auctions are being held throughout the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet. Most listings provide informative details on each home or property. Purchasing a home through a government auction can be a very rewarding experience and doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.
About the Author:
To find an updated listing of foreclosures/pre-foreclosures on the best government auction sites check out government auctions reviews or Bank Foreclosures & Pre-foreclosures
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