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I’m sure you’re aware of the real estate and foreclosure crisis going on in the United States.  Because of this, there is an excess of homes on the market. Obviously some properties will be run down in unappealing neighborhoods as usual, but what’s different this time is the surprisingly increasing number of well kept executive style properties that are up for sale for pennies on the dollar.

The timing for researching on a great deal for a new house couldn’t be better than it currently is, but first you should be aware of the pros and cons of purchasing homes through a government auction as compared to the traditional way of using a Realtor.

Some of the pros of purchasing a foreclosed/pre-foreclosed home are:

• The main advantage in purchasing a foreclosed home is the below market price.

• Many homes are in good condition for much less than their market value.

• The selection range of home available to choose from is extensive.

• No realtors or agencies fees to pay although I do recommend you consult with a real estate savvy person.

• Insurance is optional which if not required will provide an additional monthly savings.

• Great investment opportunity (i.e. rent out or flip that house)

• Less risky than trading equities in the stock market.

The disadvantages would be:

• Mortgages may be harder to get (unless you have great credit with your bank).

• You need to be aware of any existing liens, judgments, or unpaid taxes still on the property.

Check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank.  As with purchasing any house if you have enough cash to put down it makes your profit potential more appealing.

Government auctions are 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 is very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding during your first visit to a government auction so that you are comfortable with this process.

Government Car Auctions

Posted under Government Liquidation Auction