How is buying a house at auction with United Country JW Realty & Auction Services different than most auctions?
It is pretty normal to see the word auction and think foreclosure, however, that may not always be the case and it isn't necessarily the case with United Country JW Realty & Auction Services. We are a Real Estate Brokerage that is simply offering a different way for a seller to offer their home for sale.
In the market that we have been in since 2020 homes have been consistently selling for more than they are listed for, making it a huge sellers' market, this has been rather hard for any prospective buyer to win in the bidding war process. We are bringing this to this area to give buyers and sellers other options as well as to even the playing field for buyers just trying to get a fair deal.
We have been there many times with the first-time home buyer that walks away discouraged time and time again because they can't win the bid, we consider these things and encourage our auction sellers to allow the terms and conditions to be favorable to first-time home buyers. For instance, the down payment may only be 5% instead of the normal 10% for an auction. You always want to look at the terms and conditions and if you have questions call the auctioneer they can explain the terms and conditions to you.
An auction doesn't always mean it has to be cash, it can be financed only because the contract can't be subject to the financing terms, we would want to make sure that your lender has fully qualified you for a loan. You will want to have gone through the underwriting process already to make sure that there are no surprises with your financing. In any auction, it is always important to read all of the terms and conditions before placing a bid.
Buying a house at auction can be cheaper than purchasing a property through traditional methods, but it's not always the case. Here are some factors to consider:
Competition: Auctions can be competitive, and multiple bidders may drive up the price of the property. If there are many interested buyers, the final sale price may end up being higher than the property's market value.
Condition of the property: Properties sold at auction may be in poor condition, and the cost of repairs could outweigh any savings you get from purchasing the property at auction.
Research: You should research the property thoroughly before bidding at an auction. This includes getting a property inspection, researching the area's property values, and understanding any liens or back taxes on the property.
Financing: Most auctions require payment in cash or certified funds, which can limit your financing options. You'll need to make sure you have the funds available to purchase the property if you win the auction. You will always want to read the terms and conditions of each auction before placing any bid.
In summary, buying a house at auction can be cheaper than buying through traditional methods, but it's important to do your research and factor in any additional costs associated with purchasing a property at auction.