The rise in home foreclosures and distressed properties around the country has created unique investment opportunities for prospective homeowners who are willing to take a chance on a house in order to save some money. After a lender has taken possession of a property and has failed to find a buyer, they may choose to sell the home through an auction house just to get some return on their investment. This Washington Examiner article explained some of the things that buyers should know about Louisville real estate auctions. By the time a home is offered at an auction, a buyer can be sure that there are no liens or financial problems associated with the property as the bank will have cleared the title on the home. Generally, auction houses host three types of auctions:
- Reserve auctions – The most common type of auction, reserve auctions involve sellers who have a minimum price in mind that isn’t published. The seller can choose to accept, reject, or counter any bids on their property—even the highest bidder’s offer.
- Absolute auctions – Absolute auctions are fairly straightforward. There is no reserve price on a property and a home is sold to the highest bidder regardless of the size of their offer.
- Minimum-bid auctions – In a minimum-bid auction,the seller publishes the minimum offer they are willing to take for the property and take the highest bid offered by buyers.
Although it is not mandatory for auction buyers to have a real estate agent assist them, it is a good idea to have one, especially for first-time homebuyers. A Realtor® can counsel the homebuyers on what a given property is actually worth and help the bidders make an informed decision about buying one house or another. When you need an all-around Louisville real estate agent who has knowledge and experience in real estate auctions, rely on LouisvilleProperties.com to make the process fast and easy! To contact Louisville Properties, call 502.744.9504 or fill out the contact form.
