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Tax foreclosure auctions allow home buyers and investors to purchase properties that offer far more value for money, than buying in normal real estate markets. At present the economic climate is such that there are many tax foreclosure properties up for sale. Because there are so many of these on the market, the market is basically flooded and this means that time is right now to buy. Properties are going at greatly reduced prices in this buyers market.
Properties that have been taken by the IRS for non payment of income or other taxes are sold at tax foreclosure auctions. These auctions are advertised and take place anything from one to four times a year. To prepare yourself to attend tax foreclosure auctions, you must have at least a basic knowledge of the complexities of these. The more you know the more well prepared you will be to close a deal that will either a) make a good return on investment or b) provide a beautiful home or vacation home for you and your family at a well discounted, greatly affordable price.
The more you know abut a property before bidding on it at tax foreclosure auctions, the better informed you will be to bid. Tax foreclosure properties are allowed to be viewed before auction so ensure that you have seen any of the short listed properties you desire. Use an inspection list to evaluate what repairs need to be made; this will greatly enhance your ability to make a bid according to the true value of the property. Look at the area in which it is situated. Does it have prospects for future growth? Is it a good neighborhood? Are the neighbors friendly? All these matters count when formulating your offer.
These auctions are held locally, generally in the county court jurisdiction where the property lies. A good listing service will be able to inform you of what properties are available that meet your criteria and budget and when the next sale is due to take place.
Be prepared for the auction to be postponed, if there is not enough competition at tax foreclosure auction and a property has a set price, they will postpone the auction for another time.
Familiarize yourself with all the laws and legislation pertaining to the sale of tax foreclosure properties. You will need this knowledge to make all the right decisions pertinent to your real estate investment. Auction processes vary slightly so watching a couple of auctions in process before making a bid is a good exercise.
Buying at tax foreclosure auctions is not rocket science, but there is a skill to it. As an investor you have to understand both the real estate market, the auction and foreclosure process. You also need to know how to inspect properties, conduct title searches and estimate values. Many factors go into this method of investment, so you can never really know enough if you don’t want to lose your shirt.
write by kim