Purchasing a home at a real estate auction to flip can be a great way to make a lot of money in a very short period of time. Unfortunately, not everyone knows how to make sure that they are really getting a great deal. The guide below walks you through a few ways to make sure that you purchase a home that is worth the investment at a real estate auction.
Learn Everything You Can About the Home that Is Coming Up for Auction
The first thing you need to do is learn everything that you possibly can about the house that is going to be auctioned off. You can often search for the address of the home in a search browser online to see previous real estate listings for the home. Be sure to compare multiple websites to see if you can see pictures of the home.
Find Comparable Homes that Have Sold Recently in the Area
Next, you need to do some research for other homes that have sold in the area recently. You need to be sure that the homes sold for a lot more than the home that you are planning to purchase at the auction. This allows you to see how much of a possible profit margin there is when purchasing the home.
Consider the Renovations that Will Be Needed
Contact real estate agents and see if there is any possible way for you to be able to take a tour of the property before the day of the auction. If you are able to take a tour of the home, have a contractor go with you on the day you go to see the home. Walk through the home and list all of the changes that you would want to make to the home. Have the contractor also list any issues that he or she sees that will need to be repaired. The contractor can then give you an estimate for all of the changes so that you can know who much it will cost to make all of the repairs and upgrades you want to make to the home.
Once you know all of this information, you can go to a lender and get pre-approval for a loan for the amount you think you will need to purchase and renovate the home. Be sure to be aggressive at the auction because you may be able to intimidate other bidders and cause them to drop out of the auction.Share
23 May 2016
When you have a growing family, it can be hard to know what house to buy. Do you want a house that has an extra bedroom or two just in case you have additional children in the future? Do you think that one day your mother-in-law may come to live with you because of her failing health? There are so many situations to consider when shopping for a forever home. Will this next home be your forever home? This blog will provide you with tips to help you choose your forever home and make sure that it has everything you need now and many years into the future.