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The Pros and Cons of Real Estate Auctions
 
Click here to start your FREE Property Finder trial.
 
If you are looking for cheap real estate, you might consider attending a handful of real estate auctions. Real estate auctions are a great way to find affordable properties of all shapes and sizes, but they too have their pros and cons. Speaking of which, what are the pros and cons of relying on real estate auctions?
 
The Pros
 
Wide Range of Real Estate Auctions: You will find all different types of real estate auctions in the United States. For starters, there are large real auctions where multiple properties are auctioned off in a block time, like one hour. However, you will also find real estate auctions where a single property is auctioned. Typically, bulk auctions involve foreclosures and single real estate auctions involve estate sales.
 
Good Prices: For the most part, you’ll find good prices at a real estate auction. With that said, it all depends on the other bidders. On that same note, there is a reason why professional real estate investors target real estate auctions; they wouldn’t be making a profit if they weren’t getting a good deal from the get-go.
 
The Cons
 
The Competition: As previously stated, the number of bidders present will impact the good deals you find at real estate auctions. Unfortunately, this can be difficult to gauge ahead of time. Sometimes, real estate auctions are widely advertised beforehand and hundreds or thousands of people show up to bid. Other times, there are lucky to be ten bidders present. You will also find a large selection of different bidders; some are looking to buy an affordable first-time home and others are investors.
 
The Upfront Costs: Unless you have thousands of dollars lying around, you might need to come up with a what-if plan. This what-if plan is for if you are the winning bidder at a real estate auction. At the end of the auction or within 24 hours, buyers are expected to come up with a so-called down payment. This is often a percentage of the selling price. Also, some auction houses require you pay them a separate fee (typically anywhere from $500 to $2,000). If a home loan is needed, it is a good idea to get pre-approval from a local mortgage lender before you start bidding at real estate auctions.
 
As you can see, real estate auctions do have their pros and cons. If you would like an easier way to find cheap properties for sale, try the Property Finder. Click the link above to start your FREE trial today.
propertyfinder > Resources > Real Estate Auctions