Real Estate Auctions: Read The Small Print
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by: JoeMack
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Word Count: 644
I am getting sick and tired of all these unmaintained properties in my area. If only the banks would just adjust their prices then their messes could be cleaned up in a responsive fashion.
The majority of lenders out there are not willing to negotiate on the price. I bet they just don't want to comprehend they are on the losing side this battle.
There are not many ways out there to get these properties sold to home buyers or investors. One of the biggest ways to come to my mind is live auctions.
Online auction house's popularity is huge today. You can have a mild auction feeling in the comfort of your own home. All it takes is a little addiction to online auctions and before you know it you will be at the live ones.
The simplistic nature of an auction is it's greatest attribute. They are so simple to setup and finish that you could almost turn your head and it will be over. Just like that you have missed that item you wanted to bid on.
A great deal of the foreclosure properties all around are going to your local auction house. The lenders believe that they will be able to get everyone hyped out to bid up their decreasing value properties. I have personally seen this number of times. Surprisingly people do bid up these properties significantly higher than they could purchase normally without the auction house fees included.
A fix percentage of the final bidding price is the most common way an auction house gets paid. That amount is added to your bid to make the final purchase price.
Always remember when bidding that you have to calculate the auction house's commission in the price. Just imagine purchasing a house at $200,000 and having to pay 5% commission now your actual purchase price is $210,000. It will amaze you how fast everything adds up.
I sometimes enjoy reading the small print of various things. It makes me laugh how many disclaimers there are on everything. One day I picked up an auction booklet and flipped to back. There were so many things that made me laugh. In the end I just thought auctions are becoming a joke.
I wish that when I went to an auction I could win a property for the opening bid. I wish that some body could, but even if I was the only one there I still couldn't. Those incredible low prices only exist to drive traffic to the auctions.
I always thought the when you go to an auction if you bid the highest you win. I wish that was actually true. Many of the auctions have all things these super low starting points. It seems that they always forget to mention that there is a reserve price in the front of there books. Basically those numbers mean nothing and are just a fantasy. The lenders still get the price they want or they don't have to sell.
I really irritates me that auctions are for the sellers and don't care about the buyers. I do not like the ideas around reserve amounts but as long as they are discreetly exposed I can deal with it. That one that pisses me off is the short period after the auction takes place the seller can reject your bid. I can meet the reserve and win the auction and still I am not the guaranteed winner.
I can see that the auctions are in the favor of the seller. One of things that I hate the most is wasting my time. They make you fill out forms then make you pre-qualify to bid. If I knew my final bid really meant I won that would be different.
I believe that everyone should feel the intensity that an auction brings. I wish everyone luck and hope that you get that great deal. Keep your hand held high!
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