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 forclosed homes and neighborhoods they reside have drastically improved. Even some of the 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 both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- Price is the number one reason to purchase a foreclosure.
- Many of the homes are in great condition for what you pay.
- Variety and selection is better then it has ever been.
- No middle man (Realtor) to have to go through or additional fees to pay (although you should consult with someone along who can inspect the home(s) for you).
- You are not required to pay certain insurances.
- Great investment opportunity (i.e. rent out or flip that house)
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- Need to be mindful of existing liens or taxes that have not been paid on the property.
The most important thing is to make sure that the home you're interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.
Government auctions happen everying held every week throughout North America. You can locate detailed information regarding auctions on the web. Some sites will even show you previews of the houses that will be available at the upcoming auctions. Buying an estate through a government auction could be very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding only at first visit to a government auction. You should be acquainted with how government auctions work before finally deciding to buy your own home.
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To find an updated list of foreclosures/pre-foreclosures on the top government auction sites click government auctions reviews or Bank Foreclosures & Pre-foreclosures
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