Are you looking to buy yourself a new home? Are you aware that there are actually homes being sold through online auction sites such as hubzu.com, auction.com and homesearch.com? These are pre-owned homes that often have either been forfeited to the bank for one reason or another. Some of them ended up in the auction list because their owners were not able to pay the mortgages or property taxes. This can happen within a year or so after the initial acquisition. Some homes are relatively new and some maybe still occupied by the former owner.
The rules for auction will depend on the status of the house and guidelines of the owner. If it is a ‘subject to lender’ auction there will often be a reserve price which might need to be met in order for the home to sell. In an absolute auction, whoever bids the top amount gets it. These auctions are different than a ‘foreclosure auction’ which is part of the foreclosure process. You can find these auction listings posted by the bank or advertised in the newspaper.
Now that home auction has taken a new turn by conducting the auction online, the process has been simplified. With online auction websites, people who are interested in buying a home for personal use or investment can browse online for properties that they like. They will be informed of the terms and conditions and can pre-select and plan which properties to visit. They can also canvass and check their budget against the cost of the property that they plan to buy.
The transaction is completely transparent. You get to see other bids online so you can make your move before you lose the property that you desire. This lessens the incidence of getting frustrated if in case somebody else get the property that you have been eyeing on, which can commonly happen on printed auction listings.
A drawback of online house auction is that if the piece of property got auctioned because the previous owners suffered from financial loss, the property might not be in a very good condition. However, if you get to see the property online and visit it in person, you will have a true picture of what it looks like before you make your decision. The best first step includes reviewing the available properties and terms and conditions on auction websites.
Have you purchased a home at auction? Please comment below with details to give the community some guidance on your experience.