Property auctions sell off land, condos, apartments, and personal storage unit property. Bidders can usually purchase the property for pennies on the dollar due to the fact that banks or other entities have seized these properties through foreclosure or other default. There is a downside, however. Most buyers purchase these properties sight unseen.
These auctions present great opportunities to purchase high quality items at low prices. Property auctions are wonderful places to buy a home, rental property, land or personal property in storage.
The most popular property auction is the personal storage unit auction. These auctions occur when a renter fails to pay for their storage unit, and the storage company seizes the contents of the unit to sell, in an effort to recoup lost revenue. In other instances, the renters themselves will choose to put their items up for auction in order to make some extra money and eliminate the cost of storage.
Foreclosure auctions take place when a property owner can no longer afford to make the payments and the bank forecloses on the property. When this happens, the bank or mortgage company then sells the property at auction usually for a substantially lower price that what the property is worth.
The first step when bidding on a house is to find out the average cost of neighboring homes, so you can determine if the property is being sold for a good price. You should look at more than one of the properties being auctioned. This will give you a better chance of winning a bid, should you be outbid on one.
It is best to attend at least one auction as an observer in order to find out what to expect. However, most foreclosure auctions usually require you to bring a $5000 certified check to prove that you are truly interested.
Another type of auction you can participate in is a land auction, usually run by the government, of which there are three types of government land auctions.
• Timed auctions – These generally last for seven days, Monday through Sunday. During this time, you go online and place a bid on the property.
• Live government auctions – These take place at a specific time and place and are usually announced 14 days in advance. This time allows you to check out the properties, and those not able to attend the auction to place an absentee bid.
• Buy it Now properties – These are less of an auction and more of a direct sale. Buy it Now options allow you to pay a set price and receive the property without the hassle of bidding. This option is best if you want to be sure you definitely get the land you want.
While these auctions may seem overwhelming to begin with, they create an excellent opportunity to buy land, houses, or other forms of property. So whether you are looking to become a property mogul or simply a homeowner, consider property auctions.