Tips for Determining a Bid on a Residence at a Foreclosure Auction

Foreclosure AuctionsAre you looking for residential real estate for just a fraction of what it would usually cost on the open market? You can do it by attending a foreclosure auction and placing bids on a residential property that you like. Nevertheless, before you begin bidding on a foreclosed home, there are some steps you should take to ensure you receive great value on it. Take a look at several tips that will help you determine how much you should bid on a foreclosed home.

Begin by finding out as much as you can about a residential property.

Before you even think about bidding on a foreclosed home at an auction, you should learn everything that you can about it. From where it’s located to what kind of condition it’s in, it’s important for you to know a home from top to bottom. More often than not, you won’t be allowed to go inside the home and look at it prior to the auction taking place. Nevertheless, if you know the address, you can drive by it and take a peek to see what it’s all about so that you can start formulating a maximum bid for it.

Try to figure out how much a residential property might be worth.

Once you’ve educated yourself about a specific property, the next thing you should do is attempt to determine what it might be worth. If you’re friendly with real estate agents in the area, they might be able to help you out by providing you with the prices that have been paid for comparable properties in recent months. This should show you what a foreclosed home could be worth if you buy it and put a little bit of work into it.

Check to see if there are outstanding liens on a residential property.

One of the final things you should do when working to determine a bid for a foreclosed property is look to see if there are any outstanding liens on it. Those liens could very well force you to bow out of an auction for the property if there are too many of them. You’re going to need to factor any liens on a home into the price that you would pay for it at an auction.

After you’ve worked your way through these steps, you should have a minimum bid that you feel comfortable starting with at a foreclosure auction. You should also have a maximum bid in mind so that you don’t overpay for it. Wilson Auction & Realty can help you place your bids when you attend one of our residential property auctions. Call us at 419-636-5500 to see when our next one is being held in your desired area.