If you’re currently in the market to purchase a home, have you ever considered purchasing one at an auction? There are a few reasons why this might be the ideal solution for you. The main one is that if you’re looking for a larger home or one with certain high-priced features but you’re on a limited budget, you can oftentimes a house at a really good price if it’s gone into foreclosure.
That’s not to say that going this route doesn’t present some of its own challenges. That’s why we wanted to take out a moment to provide you with a list of some of the common mistakes to avoid while purchasing a home at an auction below:
Not consulting with a real estate agent first. One thing to remember about real estate agents is that they are professionally skilled in knowing how to spot a good piece of property. So, before you even begin your foreclosed home search, consider consulting with a real estate agent. You might be surprised by the kind of tips that they can offer you.
Buying a foreclosure before inspecting it. If you happen to see a foreclosed home on a website that is just the size that you’re looking for and it happens to be at a really low price, it can be tempting to make an offer without inspecting it first. This isn’t a good idea, though. From the foundation to the electrical wiring to even the plumbing and heating and cooling system, you need to know what condition the house is in. That’s why it’s essential that you have a professional come over to inspect it.
Not investigating the redemption period. Another huge mistake that a lot of people tend to make when purchasing a foreclosed home is not taking out the time to see what the redemption period is for the particular house that they are interested in. If you’re not familiar with what that is, basically there are laws in certain states that help to protect homeowners from having their house foreclosed on. Therefore, if they are able to pay the full loan amount, complete with interest, they can remain in the house. A redemption period can last anywhere from 3-12 months.
Don’t exceed your maximum price. If you were to ask a realty company like Roche Realty for tips on buying a home that is foreclosed on, one of the things that they might suggest is that you should avoid going above the price that you already set inside of your head while at the auction. This is a good thing to keep in mind because while you’re at the auction, the adrenaline can get to be pretty high and you could easily find yourself caught up in the excitement of it all. Remember, a part of the reason why you’re going purchasing a foreclosed house is to save money. Therefore, make sure that you honor your budget so that you can end up with the best deal possible.