Real Estate Auctions

Get Free Foreclosure Listings For 14 Days: Click HERE

Real Estate Auction

With the popularity boom of auction websites like eBay and Yahoo Auctions, even items of great value such as cars and heavy machinery could be brought to market at greatest value to the seller. It should be to no one’s surprise then that much of the real estate market has gravitated to the online world. Gone are the days of dealing with huge buyer’s fees and commissions. It has never been easier to participate in a real estate auction, and potentially begin to turn huge profits on them.

Do Your Homework On The Property

A real estate auction will generally be one of two things: either a “fixer upper” that is selling for a low price because it needs some serious TLC, or a perfectly normal house whose owner needs to sell it fast. The second type is what we’re interested in because you never have to actually see the property, let alone try to repair it, before you relist it at market value. Most online listings will have enough information available for you to make a reasonable assessment of its market value, and from there it’s as simple as finding a buyer to negotiate with and pocketing the difference.

Find The Gem In the Rouge

Now generally in a recession such as the one we are in now, finding a buyer is harder than normal. But by buying a house from someone facing foreclosure or a bank that has already repossessed the property and looking to regain some assets, the negotiating room will guarantee at least a small (and usually a large) profit every time. Add that to the fact that since the bursting of the housing bubble in 2007, the market has been flooded with foreclosures, inflating supply and thinning competition.

Buy Low, Sell High

The result of this, of course, is that real estate auction prices on foreclosed and repossessed houses have never been lower. In fact, just yesterday I bought a guy’s equity in his house at just over 60% of what I figure its market value will be. Now I can afford to sit on it forever until I find a buyer with a price I like. It won’t take forever, though, and honestly I wouldn’t expect to have possession of it for more than a month or two.

Sell It Before You Even Own It!

That brings me to another topic: double closing. This is the reason the foreclosure market is so ripe for newcomers right now. What this means is that you already have a buyer lined up for a property before you’ve even taken possession of it. So essentially you need no credit and no initial investment and you still pocket the difference just by bringing market A to market B. It’s not easy to do if you have no experience in real estate, but definitely has been done by newbies. Many have then used that money to go on to much greater successes.

Check Out RealtyTrac

So where are these magic real estate auction lists that everyone is talking about? Well they’re all over the internet, and any list that is worth it will usually be a subscription service. I’m currently doing most of my business on RealtyTrac and am very pleased with the results. I’m already nearing six figures this year and it isn’t even March yet. So go give their free trial a shot, I can tell you from experience you don’t have anything to lose and everything to gain!
Photo by Borman818