If you know what you’re doing, Denver foreclosure auctions can be a great place to start if you are looking for a home that’s ready to sell quickly and for less money. As with any business or home buying venture, it’s important to do your homework before you begin. Follow these three tips below to help you be more successful in landing the best deal at Denver foreclosure auctions.
Learn the Rules
Every state has different rules and laws that have to be followed for foreclosure auctions; it’s your job to know what the Colorado rules are and how they will impact your sale. Attend a Denver sale or two as well to learn how they work and know what to expect. It can also help to talk to friends and family to find out if anyone has ever bought a home from foreclosure auctions and what their experience was like. If you find someone, any tips or advice they have for your purchase will be very helpful.
Find the Home
Once you’ve learned about how the auction will work begin to look for properties that will be at sale soon and find the one that you are interested in. The U.S. Department of Housing and Urban Development keeps an up to date list of homes that are currently in foreclosure and eligible for auction on their website. Or you can check with local lenders, newspapers and courthouses to find postings about homes in default that will soon be up for auction.
Take the time to do a title search on the home you are interested in so that there are no surprises about liens that could surprise you later. Also, go to the home and visually inspect it; if you are able, get a good sense of the home’s condition before you decide to bid on it. Lastly, sit down with your realtor and find out the current market, the home you are interested in, and what a fair bid may be. They can help you figure out what you are able to bid and what the home is worth.
Set a Bid Limit
Finding the bid that works best for you can be difficult but if you work closely with your realtor you can arrive at an amount that is within your budget and is a fair price for the home. It’s important to know what you will bid and how high you will go before you arrive at the auction. The process can move very quickly so you must stick to the number you and your realtor have arrived at. Find out if there is a minimum bid and be prepared for any counteroffers but don’t go over market value; you’ll end up overpaying if you don’t stay with what you know. You will need to pay a down payment, either cash or cashier’s check, at the completion of the sale. You will also be required to prove that you have the financing for the rest of the amount, so be ready to present that as well.
Showing up to Denver foreclosure auctions unprepared can leave you paying more for a home that could have gone for much less; so do your research ahead of time. Know what to expect before you get there and know what you are able to spend and stick to it. Denver foreclosure auctions can be exciting and intense events so don’t get caught up in the excitement. Do your best to stick to your bid limit and work for the best deal.