There are many ways one can procure real estate. They can go about it the conventional way by making an offer on a home for sale and hoping that their bid is accepted by the seller. They can be handed down real estate through an estate by a loved one after they've passed away. They can purchase a foreclosed home on the cheap after the original owner has defaulted on their mortgage. Or they can sign into one of those rent-to-own property deals that are structured like car leases.
Those are a few methods of home buying out there that people interested in New York or Orlando real estate can go about calling themselves a homeowner but they aren't the only avenues out there. There is one other less conventional method we didn't mention earlier but would like to focus on for the rest of this article and that's buying a home sold by auction.
When you think of the word auction you probably imagine a room full of people sitting anxiously as an auctioneer lists off a bunch of items such as a baseball card collection or a piece of artwork that those in attendance will have the opportunity to bid on if they so decide to do so. While that's what most people think of when the word auction is mentioned there are also real estate auctions where actual homes are sold by auction.
If you have indeed heard of sold by auction real estate transactions and are contemplating getting in on the action then you'd probably be inclined to learn a little more about the sold by auction world. If that's the case then keep on reading. First off, let's talk about the sold by auction benefits, which there are many of and include the ability of buying a home at a value you deem is fair market value, having never to worry about paying more than you're comfortable with, and eliminating any potential long and drawn out periods of negotiations.
However, you must be careful when attending a real estate auction sale as they can get a little dangerous, and we're not talking about agent commission fees you may be forced to pay. No, the one thing you must be careful of when buying a home through the sold by auction method is to avoid getting into a bidding war. You will be up against other interested buyers when bidding on a home and it's easy to get carried away during an auction. We recommend walking into any estate auction with a clear cut off amount where you can no longer afford to make a purchase. If you stay within your limit you will either come away with a new home or be happy that you didn't bankrupt yourself by buying a home you couldn't afford. Good luck at the auction and we hope you make the winning, but also smart, bid!