What You Need To Know 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.

You may be familiar with online auction sites that mostly offer personal property, but real estate auctions are more complex. There is also a difference between property that has been seized and property banks have taken back due to nonpayment. Seizure auctions are usually conducted at the courthouse.

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.

You may assume you have a right to inspect the property before deciding whether or not to bid. That is true as long as the property is vacant. If the current owner, or a renter, is occupying the home, you may not be able to even set foot in the yard without being accused of trespassing. If the property is listed with a Realtor, there may be photos of the interior.

If you are intimidated by the speed and finality of the auction process, your Realtor can even bid for you. If you decide you want to attend the auction and get a bidder's card on your own, you should probably attend an auction as an onlooker first. Most auction companies charge a buyer's premium that is added to the high bid to reach the purchase price, and this is something you have to keep 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.

It is possible to buy a great house at below market prices by bidding on it competitively. You have to do some research and be smart about your bidding however. Friends and family will be impressed by how much house you got for the money you were willing to spend.




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