BID ON A HOUSE
People find a great way to find an affordable home is to go to the Home Auction Sites. (This is not an advertisement or endorsement)
Ok here’s how it works.
Go online to either HUBZU.COM or AUCTIONS.COM.
These sites have a search engine that will find you available properties based on the zip code that you are interested in. Search and explore.
If you see a house that you might want, check it out every way you can before bidding. Start with a general search of the address in Google.
You will be directed to Trulia and Zillow first. Both of these sites will give you clues but you need to not depend on them as any last word and do your own due diligence. The benefit of these sites are they:
Show you all properties for sale near the home you want
Display a blog on the home describing it and its land
Shows previous sales history
Shows previous tax information
Shows room dimensions
Shows photos
This is not enough information to make an informed bid. Look at any other listing of the home you can find on your Google search and piece the info together to try to create a reasonable value on the property.
Some non related factor would be things like :
What neighborhood is the home in
How much is the annual Homeowners fees
How are the schools rated
Paying a house call to the property is a good idea if you are in the area where you are buying. Sometimes you can tour the home with a Realtor that you register on the site or click on the Realtor that is on the page and ask them to meet you at the house to look at it. If you are really cautious, it is a good idea to hire a home inspector to do an assessment for you.
Sometimes there is not electricity turned on in the property because the bank has turned it off or some thieves have stolen the copper wiring. In that case you need to add in the cost of the electrical repair and you are gambling with the extent of damage the thieves may have cause so proceed with caution.
After you have toured the property, you can list the obvious pending repairs you will need to do to the house to make it inhabitable. Never forget these estimates when you are bidding because you don’t want to end up with a property that you have to pay more after fees and repairs than if you bought a home for sale on the market in move in condition.
Now figure out how you are going to pay for the home. If you are using financing, there are always mortgage companies advertizing on these web sites so you could start with them. If you are going to pay cash, be prepared to provide the auction company with bank statements that are less than 30 days old. Be sure to scratch out account numbers. The statements must have your current name and address on them not just your name and the of course need to add up to somewhere around the amount you are bidding.
Now go on the site and click on the home you are interested in bidding on.
Look at the starting bid. If it seems good to you enter your first bid. The website will take you through several pages of questions and agreements that you have to answer and agree to. Remember that if your bid is accepted, there is no changing your mind, so think before you bid.
Most bidding sites have a count down clock running 24/7 for the closing time of the bid. When it gets near the end occasionally it may get extended a bit. Stay with your plan and pay close attention during the last hour or two at the end of the bidding times. Do not keep putting in bids to stay in first place. There is no reward for first until the end of the bidding so hold back until the last few minutes. Keep in mind your top figure and stick to it. If it is the top amount you are willing to bid. Don’t go higher. There is usually a commission on the auction purchase form 5% to 10% depending on the company and a technology charge of usually $299.00. BE SURE TO CONSIDER THESE FEE AND YOUR PROJECTED REPAIRS BEFORE YOU PLACE YOUR FIRST BID! This cannot be emphasized enough.
Good Luck, Happy Bidding and may you find the home of your dreams!