In today’s tight inventory real estate market, finding good deals can be a challenge. Once properties have been repossessed by the lender and then returned to the market you can expect higher price and lots of interest in the property. This normally means multiple offers. In many cases once a property hits the open market they may actually sell for more than they should due to demand and low inventory. This reoccurring theme can be very frustrating at the least and can result in over paying if not careful.
Is There Another Option?
Depending on the amount of time one has and their source of funds, the county courthouse auctions can provide an opportunity to get on the front end of the deals. Although multiple buyers show up on the first Tuesday of every month at all of the local county courthouses, this venue provides one of the best options for buying property below market prices.
What Is Required To Buy Foreclosures at The Courthouse Auction?
Time, is probably the most important item to consider. In some counties there may be a couple of hundred foreclosures each month. Although this list shortens during the month due to reinstatements, short sale contracts, bankruptcy filings and other non-judicial foreclosures issues, one could easily be driving by 100 plus properties each month. For those that are vacant or for sale, walking the property to further evaluate its condition is essential.
Once looked at, a determination must be made as to value. Generally speaking this is ARV (after repair value) and the cost associated with making the necessary improvements. This requires ready access to relevant sales data, tax reports and an appraiser’s database for reference is always helpful.
Once this is done consideration must be given to title conditions. This can be very time consuming and expensive. Each property has to be evaluated to determine if there are any outstanding liens or encumbrances that may follow the property after foreclosure. This takes a lot of time.
Once all of the above is done, arrangements must be made to take certified funds to the auction. This is generally accomplished by securing certified funds from your bank, made out to you in various amounts and denominations. They only take certified funds at the courthouse auctions, and property is always sold AS IS with no warranties.
Sound like a lot of work, it is. Sound a little risky, it can be. Sound like a good way to get deals before they hit the open market, it is.
We Make it Easy
This is where we can help. As Brokers and experienced investors we can eliminate the time and commitment required of you, by doing all of the ground work ourselves. You only need to provide the cash and determine which property you want to buy. We will do the rest.
To learn more about how you can get on the front end of the good deals, give Van a call at 770-623-3313.
Van Purser is a licensed real estate broker in Georgia. Since1981 he has successfully purchased and renovated over 400 homes. His expertise is in the area of foreclosures, rehabs and fixer uppers. Additionally, he has represented hundreds of clients over the years as a broker with Metro Brokers, RE/Max and now with his own firm. He and his wife, Jeanne, who is also a broker, have been happily married since 1977. Van can be reached at 770-623-3313 or by email VanPurser@VanPurser.com