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Answers (2)
- Frank Becerra, "Las Vegas agent"
- Contributions:84
If you know what you are buying.....There are a couple of type of buyers in the auction. Those that know what they are buying, say investors and the rest of the buyers. Most people are lured by fliers that talk about homes that are worth 300,000 (2005-6) being offered for a starting bid of 5,000.
At these auctions aside from the 5% premium, you have to consider that they are not absolute auctions, in other words if you are the winning bid at 7,000, the bank still has a final say as to weather they want to sell it for that. They will likely negotiate with you, and if you don't come up to what they want you will likely not get the home.
In our market we are seeing fewer and fewer auctions for reasons reflected on this blog post Las Vegas is a big auction.
At these auctions aside from the 5% premium, you have to consider that they are not absolute auctions, in other words if you are the winning bid at 7,000, the bank still has a final say as to weather they want to sell it for that. They will likely negotiate with you, and if you don't come up to what they want you will likely not get the home.
In our market we are seeing fewer and fewer auctions for reasons reflected on this blog post Las Vegas is a big auction.
- Michael Emery, "MikeEmery"
- Contributions:7283
Foreclosed homes that haven't sold are often turned over to auction companies for liquidation. But often these homes have 'reserve' prices so if the reserve isn't met at the auction, the home goes back on the market. Plus you will pay a 5 percent buyers premium to the auction company.
The largest auction company is called REDC. They are based in CA. If you google REDC auctions you will find their site.
You can also buy homes at tax auctions. Contact the county where you live to see if they have tax auctions. Homes that end up at tax auctions are homes which have an outstanding government tax bill. However if there is an underlying mortgage, most often the lender will have paid the taxes to keep them from falling into tax foreclosure. It's also possible to buy a home at a foreclosure auction. But I am not familiar with the process in Nevada - only Minnesota.
The largest auction company is called REDC. They are based in CA. If you google REDC auctions you will find their site.
You can also buy homes at tax auctions. Contact the county where you live to see if they have tax auctions. Homes that end up at tax auctions are homes which have an outstanding government tax bill. However if there is an underlying mortgage, most often the lender will have paid the taxes to keep them from falling into tax foreclosure. It's also possible to buy a home at a foreclosure auction. But I am not familiar with the process in Nevada - only Minnesota.
I have heard that buying property at an auction can save you alot of money... anyone know how?
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- (4 reviews)
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