Local Real Estate Auctions

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The National Association of Realtors estimates that within the next few years, one third of all U.S. properties will be sold by Auction. Our experience over the last few decades has proven that selling real estate in a competitive-bidding atmosphere, results in true market value. Real Estate Auctions are on the rise across the country and weve paid thousands of dollars to agents and brokers. Book a seminar with us today and learn about the possibilities available through Real Estate Auctions.

Seminar Overview:

• Logistics of a Successful Auction and Compensation Structure
• Broker Participation

Buying A Property At Auction: 13 Things You Need To Know

Have you ever thought about buying your next home at auction? Auctions are a great way to avoid lengthy and uncertain buying procedures and bag yourself a bargain. We have put together our essential points to consider when buying a property at auction.

How Buying A House At Auction Works

The benefits of buying at auction include expanding your options and possibly purchasing at a discount. You may face less competition to buy an auction house compared with buying in the traditional way, but you will also be dealing with a different pool of potential buyersoften, experienced investors.

Perhaps the biggest risk of buying at auction is that you will have limited knowledge of the properties for sale, making an expensive misstep a real possibility. Also, as with any real estate purchase, you will need to read, understand, and sign lots of paperwork .

Real-estate lore is rich with tales of homes bought at auction for well below , and such bargains do exist. However, auctions are typically a riskier way to acquire property than buying through the usual process. That reality makes it vitally important to be well educated as to how real estate auctions work and prudent about the properties you consider bidding on.

Many people incorrectly believe that auction homes are a good deal, says John Myers, a real estate agent and qualifying broker with Myers & Myers Real Estate in Albuquerque, N.M. Some auction homes are a good deal, and others can be a big mistake.

To help you avoid making a big mistake, here are the basics of residential property auctions, so you can decide if this option might work for youwhether you want to live in the property or use it purely as an investment.

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Luxury Property Auctions High

Luxury property auctions dont usually feature properties in mortgage or tax default. Rather, these are high-end properties sold at auction to avoid the lengthy time on the market that luxury properties often face. The rules for these auctions are set by the seller and the auctioneer, so be sure to read them carefully before bidding.

Where to Find Luxury Property Auctions

• Concierge Auctions

Pros & Cons of Luxury Property Auctions

While you cant expect to walk away with a killer deal every time, these sellers typically have selected an auction because they really need to sell by the auction date, rather than having the uncertainty of listing the property with an open-ended timeframe.

With that time pressure, they may be willing to accept less, sometimes significantly less, than the value they might get waiting for the right buyer. On the other hand, really hot properties may sell for more due to the excitement and competition of an auction.

What Types of Investors Luxury Property Auctions Are Suited For

• Anyone looking for a deal on luxury property.

Pro Insights Luxury Auction

Real estate professionals take a ton of time preparing for auctions. Luxury auctions are an excellent place to briefly discuss the differences in three types of auctions:

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Auction Resources & Education

Search for a variety of government surplus and seized propertyincluding real estate. This includes auctions of real estate through the US General Services Administration, US Treasury, and US Marshals Service Seized Assets. In addition, there is information about obtaining property by auctions through Fannie Mae, FDIC, USDA, HUD, and the VA.

The National Auctioneers Association is the worlds largest professional association dedicated to auction professionalsThe association is dedicated to providing its members with educational programming and resources to help them advance themselves and, in turn, the industry. Members of the NAA abide by a strict Code of Ethics and are connected with an extensive network of auction professionalsNAA serves auction entrepreneurs with services provided based on four cornerstones: promotions, advocacy, education, and community.

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How Does The Real Estate Auction Process Work

I cant stress it enough: the real estate auction process isnt any more difficult than following through on a traditional home purchase its just different. The more familiar you get with the real estate auction process, for that matter, the easier it becomes. That said, theres no reason you shouldnt look into buying houses at auctions they have some really great deals. And if that sounds like something you could get behind, here are the basics of what you could expect to encounter.

More often than not, auctions will take place at a local courthouse. Sometimes, auction companies will choose another location that comfortably fits the expected number of participants for an auction. Tax lien auctions, on the other hand, are generally overseen and conducted by the local sheriff since the seller is often the government.

In each auction, there is a starting bid, usually determined by the total amount owed. If that initial bid is not met, in most cases, the property is set aside and held by the lender or government to sell off in another manner in the future.

As long as that first bid is met, normal auction rules apply. The investor who makes the highest bid and can meet the auction requirements, such as a cashiers check or payment within X number of hours, wins and receives the paperwork to take ownership with that property.

The Chicagoland Real Estate Auction Sells Property Direct From The Seller To The Public At Wholesale Prices

The Auction is ongoing, the bidding never stops!

We have a wide variety of property available for purchase all over Cook County, and especially in Chicago, Illinois.

We specialize in: Single Family Homes 2 and 3 flats Vacant Land Condos, Parking Spaces & More! Set your price! You can make any offer 24 hours a day, 7 days a week. Be sure to sign up on our mailing list to receive the latest additions and special offers.

We make buying simple. You can pay cash or use conventional financing. We offer a hassle free approach to purchasing! No red tape. No dealing with banks. Investors, builders, first time home buyers: we have the property for you. These properties are not short sales or foreclosures. They are owned by a locally operated seller in the Chicago area, looking for liquidation ASAP.

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Other Auctions Offered By Seller Not In Default

Its also possible to buy properties being auctioned off directly by the seller instead of the bank. Most of the auctioneers that offer auction services to banks for REO auctions, will also accept properties from anyone else as well.

While auctions have traditionally been thought of only as a last-ditch effort for distressed properties, more and more sellers are turning to auctions as a way to get out of their property faster than the open-ended process of listing the property on the traditional real estate market. Some of the most opportune times to hold auctions is in hot markets. Pitting all interested and qualified parties against each other in a limited time frame could be a powerful way to reach an excellent sales price.

Where to Find These Auctions

• Bank Foreclosure Sale

Pros & Cons of These Auctions

Pros Financing may be available, inspections may be available, title insurance often offered, properties may be fixed up, auctioneers typically offer more customer services / support then other auction types.

Cons The rules arent mandated by the state, so you need to carefully review and understand the rules for each auction before bidding.

Important Note There are no guarantees that the sellers are willing to part with their property for a price that makes sense for you, but since theyve listed it at auction, theres a good chance you can get a great deal, especially for a property that you plan to rent out.

How To Find Local Real Estate Auctions

If you want to save money by buying a property in a real estate auction, one of the challenging tasks you have is finding genuine listings. There is a wide variety of options out there. Unfortunately, not all of them will yield the results you desire. Here are essential tips you need to consider to get legitimate real estate auctions near you.

1. Check Public Records

You can look into the public records from the county clerks office in your area. The county clerk offices usually have auction events in their public listings. Check for Notice of Sale or Notice of Default . These notices have lists of houses likely to be auctioned soon.

2. Look in the Local Newspaper

Check the legal notices in your local newspaper to see any legitimate auctioneers advertising houses for auction in your area. Checking your newspaper will help you avoid fake auctions.

3. Look for Possible Listings from Financial Institutions

Banks and other lending institutions usually list properties they own. You can check their websites for possible listings. Some of the financial institutions that advertise auctions and foreclosures include GMAC, Wells Fargo, IndyMac and Bank of America.

4. Search Online

You can check real estate auction sites such as Foreclosure.com and RealtyTrac.com for a list of properties that are awaiting auction. Prepare to pay a few dollars to see these listings. However, some sites offer free trial periods for new members.

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Why Does Property Go To Auction

There are several possible reasons why a home might go up for auction the real estate auction process will vary slightly depending on why that particular house is going up for auction. However, the two most common reasons a house goes to auction are foreclosure and tax liens.

A foreclosure auction occurs after the previous owner failed to make payments over a series of months and the bank or lender has foreclosed or taken possession of the property. The original lender sells the house in this situation, creating the starting bidusually the amount owed, plus fees and expenses. Auction attendees can then make that bid, or higher, to get the auction ball rolling.

A tax lien auction is similar, but the property is seized due to unpaid taxes or tax fraud. In this case, it is the lien being sold. Whoever owns that lien has the right to collect it from the property owner or seize the property if they are not paid. (Note: Tax lien investing is its own nuanced strategy.

Property Tax Default Auctions

Another way a home ends up on the auction block is when the owner does not pay the assessed property taxes. In these cases, it is the unpaid tax authority, rather than the bank, that seizes the property. The resulting tax lien auction is conducted by a local sheriff, clerk, or the county or local tax authoritys comptrollers office.

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What Bidders Need To Know

Before bidding at a real estate auction, you should understand the risk you are taking. A bad purchase could haunt you for years. You also need to understand the auctions rules and be prepared to follow them before trying to participate.

You will have to register and submit a refundable deposit of 5% to 10% of the propertys expected selling price to the entity holding the auction. If the auction is in person, be sure to check in at least an hour before the scheduled start and obtain an official card, which you will raise when you are ready to bid.

Winning a property at auction can work in two different ways.

• In a lender confirmation auction, the lender does not have to accept your offer, even if you are the highest bidder.
• In an absolute auction, the winning bid gets the property.

The starting price of the auction may be the balance owed on the mortgage or a lower amount designed to spur bidding. In a foreclosure auction, the lender is not allowed to profit from the auction. Often, these properties are sold at a loss if there is a profit, it is supposed to go to the foreclosed homeowner after the mortgage and any other liens are paid. Auction properties are not always great dealsfor example, the auctioneer could set a hidden reserve price on a property, which is the minimum that must be bid.

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Check For Any Claims Liens And Occupants

Before you bid, youll want to hire a title search company to see who might hold liens against the property. As the owner, you will become responsible for any liens, which means more money out of your pocket.

There may be other claims against the homenot just tax liens but also contractor liens or a second mortgage. Bidders should check with the auction company to ensure that the property has a clear title. If you do win an auction, youll want to buy title insurance during escrow or immediately after closing to protect yourself against any liens not uncovered during the title search.

In some cases, the owner or a squatter will be occupying the property, and you will have to evict theman often-lengthy process that can be unpleasant at best and expensive at worst. It could be more advantageous simply to offer them several thousand dollars upfront to move out and hand over the keys.

Refrain from doing anything until you hold the title. Avoid the urge to start renovations or move into the property immediately after getting your certificate of sale. You will still need to wait up to 10 days or so to receive your certificate of title. The property is not actually yours until you hold that certificate the owner could still retain his or her right to the home by filing an objection to the sale with the court or by paying off the loan.

Where Can I Find Information On Fdic Real Estate Auctions

Auction announcements can be found on the FDIC Special Real Estate Sales Events web page at. Advertising may also appear in local, regional or national newspapers or other media in each events local and/or regional area.

I am interested in a property that I thought belonged to FDIC. How can I find out who owns it?

If your property of interest does not appear in the latest inventory of FDIC real estate properties currently available for sale at , contact your local county clerk or recorders office, or local title company for information. They can assist you in procuring a copy of the property deed, title, and/or other publicly available documentation to confirm ownership.

If, after that, you need further assistance, contact the FDIC Owned Real Estate Department at or 568-9161, and be prepared to provide the subject propertys name and location, deed or deed recordation, and/or any other additional title documents.

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Sheriff Sale Auctions Judicial Foreclosures

Sheriff sale auctions are public auctions of properties that are the result of a court order. Most commonly, the properties are being auctioned because of foreclosure, but it can also be due to tax liens or lawsuits, wherein the home must be sold to pay according to the judges ruling. The proceeds from the auctions are used to repay these debts, with any excess proceeds going first to other junior debts on the property, and then to the owner.

Where to Find Sheriff Sale Auctions

The Sheriff is generally an elected county official that enforces the law in unincorporated areas , and typically serve as officers of the county courts, which is where their responsibility for court-ordered sales comes from.

To find information on Sheriff sales in your county, do a Google search for your county + sheriff sales, or go to your county Sheriffs website.

You can also use third-party services like PropertyRadar that provides a list of Sheriff sales. When coupled together with PropertyRadars enhanced public records data about each property, youre better able to thoroughly research each opportunity.

Pros & Cons of Sheriff Sale Auctions

Pros Buy below market value, doesnt require negotiating a deal with the owner, less competition.Cons no inspections, no title insurance, may have to evict occupant, no financing typically pay in full upfront, money may be tied up during redemption period, the buyer is responsible for senior debt including property taxes.