If you’re looking for alternative routes to home ownership, an auction can be a great option. Check out this guide to learn how to buy a house at auction.
If you’re looking for a new home in Wichita and feel like you’ve exhausted the local real estate websites, it’s possible that buying a house at auction may be the next step for you. There are currently hundreds of thousands of homes in a state of foreclosure across the United States, which means they have been repossessed and are up for auction.
Foreclosure auctions are by far the most common method of buying auctioned homes and can save you a ton of money in the long-run. Here’s exactly how to buy a house at auction.
How to Buy a House at Auction: The Process
For those who have never considered buying a home at auction, the process can seem intimidating at first. If you’re wondering how do foreclosure auctions work, the first thing you should know is that they are by-and-large administered by the government.
This means that different areas may have different process and requirement. For example, buying houses at auction in some states require all bidders to bring a certified check worth $5000, to prove they’re serious.
Most foreclosure auctions take place in a public space such as a courthouse, but a venue such as a convention center may be hired for the occasion.
Remember you’ll need to register for the auction, which you can usually do online. After that, you’ll need to arrive early to check in.
Most importantly, you will be required to pay for a house in full on the day of the bid, no exceptions. So make sure you have the cash ready!
Do Your Research
If you’ve found a house you want to bid on, get the right information! Driving by the home beforehand is a given, to scope out the condition and see if it matches the photos. Just remember not to disturb the occupant, as this is illegal and amounts to trespassing.
It is also crucial that you hire an attorney to do a title search on a home. This will flag up any problems that would become your responsibility if you purchased the home. This could include unpaid real estate taxes and zoning violations, which you don’t want to become liable for!
You could also get a realtor to conduct the research for you, as they will know exactly how to figure out the condition of the property. They will also be able to give you an idea of what similar properties in the area are going for.
Once you arrive on the day, check in and get seated with plenty of time. Make sure to set yourself a spending limit beforehand, and never bid what you don’t actually have ready.
When considering your bid, factor in renovation costs you think you’ll need to pay, as this could up your total spend considerably.
When buying a home at auction, don’t let the other bidders intimidate you! Just focus on your plan and what you want.
Finally, once you’ve bagged your home, make sure to seal the deal and get your deed quickly. Also, consider purchasing title insurance on the same day, then you’re all set!
To learn more about how to buy a house at auction, or how to get the home of your dreams in Wichita today, don’t hesitate to get in touch with one of our highly-qualified realtors today.