Buying a foreclosed property through Auction.com is a great way to find a new home for much less than its market value. But before you start looking through our online listings, there are a few things about bidding on foreclosures that you should know.
1) Inspect the Home with a Professional.
Since many foreclosures sit unoccupied for months before a buyer can be found, you can never be sure how well-maintained the property is until you see it for yourself. When looking through our listings, focus on homes that are within driving distance of your current location, and always enlist the help of a professional inspector when making your rounds. Remember, it’s always better to be safe than sorry.
2) Set a Bid Limit.
As with any auction, you should set a limit on how much you’re willing to bid for a foreclosure before you make your first offer. I call it “sticking to your guns.” Check around the area to see how much money similar houses are selling for, and then try to restrict your maximum offer to about 15% less than the going rate. Do NOT panic if you’re being outbid on your dream home. The money you’ll save by going with a more affordable listing is always worth the wait.
3) Calculate Repair Bills.
If the foreclosure you’re looking at needs some work to get up to snuff, make sure you factor that into your maximum bid. It’s totally acceptable to bid on a home that needs renovation, but some repairs can cost thousands of dollars when done professionally. The last thing you need is to be surprised with a huge bill after you’ve just put a bunch of money into a new mortgage. It’s easy to get a great deal on a foreclosure. While these homes require a little more work than a normal house in terms of renovations, repairs and the buying process itself, they can save you a lot of money in the long run. Just follow these easy tips and you’ll be bidding like the pros in no time.
