Calling a Realtor or combing through the classifieds section isn’t the only way to find your next home or investment property; auctions are another great way to find a deal. Real Estate Auctions Knoxville TN used to be the province of speculators and investment professionals, but no longer. Whether you’re looking for your next residence, or you’re using real estate as an investment, this article will help you understand the basics of real estate auctions.
How Properties Get to Auction
Tax lien and foreclosure auctions are the two main types, but certain things must happen before a property makes it to the auction block. A home can only be auctioned if the homeowner fails to pay or renegotiate the loan; it then goes into foreclosure. Homes can also end up at auction when property or income taxes are not paid.
How the Auctions Work
Real Estate Auctions Knoxville TN happen at hotel ballrooms, courthouses and other locations, and they are also held online. Foreclosure auctions are sanctioned by bank trustees, while tax auctions are done by local sheriff’s departments. Absolute auctions end with the highest bidder getting the property, but a lender confirmation auction means that a lender has the choice whether or not to accept an offer.
Benefits of Property Auctions
Real Estate Auctions Knoxville TN give you a chance to buy properties before they make it to the general market, and prices can be lower than through those traditional avenues. Auction properties aren’t always the best deal, but the potential for an incredible bargain is such a big draw that the benefits outweigh the risks for many.
Auction Drawbacks
The properties on the auction block aren’t necessarily ‘diamonds in the rough’; when they wind up there, it always means that the previous owner was in dire financial straits, and many properties are under tax or contractor liens. Avoid these problems by purchasing through an auction house, which ensures the clear title of all properties.
If you want to score a bargain on an auction property, you have quite a lot to learn. Auction buying is much riskier than buying through a Realtor, and it is important to be knowledgeable about the properties and the process. For motivated and savvy investors, Real Estate Auctions Knoxville TN are a great way to buy an investment property or home without going over budget.
