Should you purchase a new flat screen T.V. just in time for the Super Bowl, or should you buy that $1500 house?
Are there any $1500 houses on the market?
Yes, and in some areas auction prices are even lower.
What’s the catch?
You need to know what you’re doing. As with anything, knowledge is power.
You must determine if it’s a good buy. A boarded up crack house in a very undesirable neighborhood is not a good buy, even if you can get it for less than $100. Always keep in mind that if the bank wants to get rid of it that badly there must be a good reason.
However, often banks want to move their real estate just to take certain houses off the books. For example, mold is a hot button issue they generally don’t want to deal with. If the foreclosure has mold and you know how to remove it, you may find yourself looking at a good deal-for you.
Also, most banks have their own bidders at auctions who will buy the houses and then offer it for sale later at a more reasonable market value. So- if the bank doesn’t try to get the bidding up – what’s going on?
Here’s where investing skill really comes into play. Can you do the [tag-tec]rehabbing[/tag-tec] yourself? Could this property be brought up to its potential? Can you find tenants who will bring in a profit? Will this “bad” neighborhood make a come-back?
Don’t write off these auctions or neglected properties just because others don’t see the potential. Even if you don’t have any intention of buying, attend such auctions just to learn. You can soak up quite a bit of practical information about how the system works.
Meanwhile keep checking prices of the T.V.’s. Perhaps you can find a good deal on one later as their prices go down.
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Technorati Tags: foreclosure, banks, property, auctions
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