Tips for Buying Foreclosure Homes
Numbers of foreclosure sales in the USA are at near-record highs thought the country, and is no exception. Colorado is home to many beautiful locations, and with falling property prices and economic conditions exerting pressures on the household, and defaults increasing it really is a buyers market out there – but how do you make sure you buy a bargain, not a time bomb?
#1: Forewarned is Forearmed!
Nothing beats good preparation for getting the results you want. Do your homework well before the auction. A Foreclosure Auction is a live environment, so you need to have done your due diligence before you start bidding. Once you’ve bid, you cannot retract your bid and it forms a formal offer to buy at the price you’ve given – unconditionally. With this in mind, you’ll want to do as much research as you can on the properties being offered.
#2: Check for liabilities, unpaid Taxes, etc on the property.
Another critically important thing to do with sales is to make inquiries to ensure you are aware of any liens, liabilities and unpaid property taxes attaching to the property. When you buy a foreclosed home at auction, you’re buying with it any attached liabilities and taxes. If a home does have outstanding taxes etc, that doesn’t mean you shouldn’t buy it – you just need to take these into account when deciding your max bid.
#3: Be prepared to pay the deposit if you win.
For most Auctions, if you have the winning bid, you’ll need to pay a deposit immediately. a standard amount is 10% in most cases. In some states you will need to pay the balance of the purchase price on the day of the auction; in other states, you’ll have 30 days to pay the balance. Make sure you understand the constraints placed upon you and be clear on the rules that apply to the auction BEFORE you bid!