Sunday, October 14, 2012

What to Consider When Buying a House at Auction - Part 2

Have you considered how much money you actually spend when buying a house at auction? In my previous article, I talked about the first three things you should consider when buying a house at auction. All those factors encourage you, as the buyer, to consider learning about the process and the legality of what you are getting into, and to consider the property that you are about to bid on. Now let's move on to three other considerations you have to think about.

4- Are you financially prepared?

In life, whatever you like or desire, if you don't have the money, you just can't have it. The same goes for buying houses. So the next thing you have to realize is the amount of money you have. In some auctions, once the sale is awarded to you, you would have to provide an upfront payment up to 10% of the final price. So for instance, if you're buying a house that may be sold at $1 million, you need to have at least $100,000 to bid. The rest of the amount may be paid in terms written on the policy of the auctioning company. So again, pay close attention to terms and policies prior to the auction day.

5- Have you decided on the amount you are willing to pay?

Before you step into an auction, it's always best to finalize the amount you're willing to pay for a property. This is the amount that, in some ways, you would use the words, "this is it, take it or leave it." You must not bid beyond this amount, or you might get in financial trouble.

6- Did you learn about the taxes?

Finally, learn about the taxes and other fees required when buying a house at auction. You might be surprised at how much more you need to pay so make sure that you are okay with paying all the taxes and fees before deciding to attend the auction. Remember, this is an investment - and a really big one.

At the auction, do not be intimidated by the number of people who show up. Just keep in mind the amount you are willing to pay for the property. Auctions are pretty exciting especially as the price goes higher, but try your best not to be carried away. If you really want to buy a house at auction, you better start watching some auctions live or use online videos now to have a feel of what it's really like to be in one.

1 comment:

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