Everything From Junk To Real Estate Can Be Sold At Auction

Category: Finance, Real Estate.

Everyday we watch as the rising number of bank owned properties increases.

The majority of lenders out there are not willing to negotiate on the price. Every neighborhood is flooding with these unmaintained eye soar properties. I bet they just don' t want to comprehend they are on the losing side this battle. One of the biggest ways to come to my mind is live auctions. There are not too many ways out there to get these properties sold to home buyers or investors. Live auctions have general y been a great way to sale that overstocked inventory. They can be held almost anywhere that a microphone can be setup.

Everything from junk to real estate can be sold at auction. The mobility of theses auctioneers makes these live auctions very popular today. A great deal of the foreclosure properties all around are going to your local auction house. They are able to setup a whole auction in front of a house in less than twenty minutes. The lenders believe that they will be able to get everyone hyped out to bid up their devaluating properties. Surprisingly people do bid up these properties significantly higher than they could purchase normally without the auction house fees included. I have personally seen this number of times.

The majority of auction houses have a fixed percentage of the final selling price of the auctioned products or homes to be received as their payment. Always remember when bidding that you have to calculate the auction house's commission in the price. I have seen the typical amounts to be around three to five percent to be added to the winning bid. Just imagine purchasing a house at$ 200, 000 and having to pay 5% commission now your actual purchase price is$ 210, 00It will amaze you how fast everything adds up. Usually rules and guidelines are to protect the buyer and the seller but I wish that was true. The problem with a significant number of auction houses today is their rules and guidelines. Be very careful and read all of the small print pertaining to the auction you are interested in attending.

You would think that the minimal bid would be the lowest acceptable price for the seller, but no it is only a teaser. Make sure you read the sections pertaining to bidding and buying at auction. In the minds of these lenders they would not sell their properties at that low of a price. The lenders setup minimum reserve amounts for each property they are auctioning off. The best part is they do not have to sell it for that price even if you bid up the property in question over its reserve amount. In the past whatever the property price was bid up to in the end was it. Did you know that if you win an auction the seller typically has seven days to accept or deny your bid?

That was the price the property was sold for and on to the next. Even if you win and your bid is higher than their reserve that does not mean that you have won. You could have just spent your own time making offers. The most frustrating part is that they made you pre- qualify to bid at the auction. In the end the lenders decide either way!