Do you want to invest in profitable property or simply buy a new home at a bargain price? If so, you want to consider property auctions. Properties sold at auction are often owned by mortgage lenders after repossessions, former council / housing association homes or have being empty for some time after the owner passed away. In each case, the owner has put the property on auction for a quick sale and this can lead to some great deals on the market value. Finding an auction as auctions tend to cater for property professionals, rather than the general public, advertising and awareness of auction houses is limited. A good place to start is looking through the telephone directory, yellow pages or searching on Google or Yahoo. Another good tip is to keep an eye out for Sale signs outside homes. Where the board says 'for sale by auction', call the telephone number provided. You will either get through to an estate agent acting on behalf of the auction house, for more details visit to www.auction-words.com or you will get through to the auction house directly. If you get through to an estate agent, ask them for the contact details of the auction house. The estate agent may be reluctant to do this, so it is worth being persistent Once you are able to make contact with the auction house, ask to be put on their mailing list. Although there is likely to be charge for this, you will begin to receive details of properties due for sale. Before you bid Having identified the property that you want to buy, you will need to arrange finance. For most people this will mean approaching a mortgage lender and it is important to do this in advance of the auction. Remember once you win a bid, you are legally bound to purchase the property and you need to be able to pay within a set number of days. The mortgage lender will require a basic valuation of the property, but it is advisable to invest in a full survey as the property may be at auction due to structural problems, for more details visit to www.auctions-profits.com which the basic survey would not pick up. Before bidding for your desired property, you may want to attend a few auctions to get a better idea of the experience. Winning your bid Set yourself a price limit, but do not get carried away and bid beyond it. Having had a valuation done, you will have a good idea of the market value and should not go above the amount agreed with your mortgage lender. If your bid is successful, you will be legally bound to purchase the property and will need to put down a 10% deposit of the property's selling price. You will be asked to sign a contract, which you would have seen before the auction and the seller will be legally bound to complete on the day. Finally you will need to pay the remainder of the selling price within an agreed period, such as 28 days. Congratulations, you have just picked up an auction deal.
The Basics of IRS Property Auctions
You may have seen commercials or advertisements on the web about the steals you can get at IRS property auctions. Whether you can actually get such deals is questionable, but there is no doubt the IRS does hold auctions. The purpose of the auctions is to sell off property of a taxpayer that owes the IRS money. Here are the basics of the auction process.
Perhaps the most interesting thing about IRS auctions is there is no set procedure. With some auctions, you must appear in person to bid. With others, you can mail in a bid. Still others require you to submit a sealed bid. So, how do you know which is which? You need to get a copy of the official notice of the auction. It lays out all the specifics and is binding on the property sale.
The second basic thing to know about IRS property auctions is the payment method. Ironically, the IRS is really into cash. If you intend to bid on a piece of property, you must be prepared to pay in cash, with a cashier's check or certified bank check. You cannot finance the transaction, pay by personal check or even use a credit card. Again, make sure to review the official notice of auction for payment requirements.
This cash or equivalent attitude stymies many bidders. How can you get a cashier's check before the auction if you do not know what the winning bid will be? To resolve this, many people will get a check for their minimum bid and then bring cash on top of it to make up the difference between the check and winning bid. Not the smoothest approach, but the IRS accepts this approach.
Finally, most people wish to know if they can get on the IRS mailing list for property auctions. In short, the answer is no. There is no list. While this might make you groan, you should realize it also constitutes the reason you can sometimes get a major deal. If everyone was able to access a mailing list, the auctions would be packed and great deals would not exist!
Both Gaurasha & Richard A. Chapo are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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