When a person is on the market for a new home, several buying options are available. As with anything, there will be pros and cons to any home buying experience; therefore, it is important to consider these factors in order to determine which is the best option. When searching for a new home, it is highly recommended that individuals hire a reputable real estate agent. This professional is able to provide listings to all of the currently available homes. In addition, they will guide their clients through all of the paperwork and ensure everything runs smoothly up until closing is completed for the home.
The number one option that provides the most benefits to a home buyer is an auction. Local houses for sale by auction are homes that have been previously taken from the homeowner, and possession goes to the bank. Although there are pros and cons to buying a home through auction, individuals will find this to be an attractive option.
Pros of Buying a Home Through Auction
- The price can be well below market value
- Some auctions do not have a set reserve price, which makes the discount even greater
- Sometimes, allotted time is allowed for inspections to be completed prior to bidding beginning
- No negotiation involved
- Closing is quicker, usually within 30 days after the auction
Cons of Buying a Home Through Auction
- In some cases, inspections are not allowed prior to bidding
- Property may need serious TLC
- Homes are bought “as is”
- If the home has any tax liens, they become the responsibility of the new owner
- Vandalism and weather related damage are common in homes that remained vacant for a while
- Payment in full, or earnest money, is required after winning the bid; however, pre-approval for a mortgage may be used
With so many homes being foreclosed on, there are plenty of opportunities for home buyers to find their perfect home at a fraction of the cost. With so many advantages gained, it is highly recommended that individuals consider this option when they begin their home search. The process is simple and does not require a huge amount of time to close on the home.