Is auction a possibility?
There is a great way to save your money when buying your home. Mortgagee In Possession real estate that go up for sale at auction.
There are thousands of properties Australia wide that become seized every year due to bankruptcy that are being repossessed by banks and other home loan institutions. These properties are then auctioned off at a fraction of their actual market value, and yes you could pick yourself up a bargain.
BUYING A PROPERTY AT AUCTION
1. Using a online search engine and do a search the for specialist real estate property sites. Most well established auctioneers will have a presence.
2. Make sure you have your home loan pre-approval in place keeping in mind that usually 10% deposit is required immediately after the auction ends and your the highest bidder.
3. Order a catalogue for any upcoming auctions that you might be interested in. (there may be a charge for ordering the property catalogue).
4. When looking at the properties for auction, ask the real estate agent the reserve price of the properties that interests you. This is the lowest amount that the property will be sold for.
5. Visit the property. If you are intending on bidding on it, have a professional building and pest inspection done beforehand. This is to ensure that the property has no damage and it is actual market value and you dont get any nasty suprises.
6. Before the auction make a plan of the property or properties that you intend on bidding on, decide on the maximum you are willing on pay for the home. During bidding wars it is easy to get carried away. If it is for an investment, dont look at buying it with your heart, use your head.
7. When at auction, place you bids by raising your hand or in some states of Australia a paddle is used. At some auctions it is possible to bid via telephone or internet, but this is at the discretion of the real estate auctioneer.
8. When the auction hammer falls and if you are the highest bidder you are deemed to have made a legally binding contract and a deposit is made.
Your mortgage broker always has his or her finder on the pulse. These people live locally and know your local market. Give one a call today!
