An agent in my office is attending the Denver County and Arapahoe County foreclosure auctions regularly. He has an investor client looking for properties at foreclosure sale. We had an interesting discussion last week.
Many buyers think that they need to buy a foreclosure to "get the best deal." There are a few things buyers should know:
- You must bring cash to the foreclosure auction. There are no mortgages.
- You won't have the opportunity to inspect the property. They are truly sold "as is."
- Investors are breathing heavy over the foreclosures in Denver these days. Our market is hearalded as the first to emerge from the downturn. Investors want to snap up rentals and properties to fix and flip while the getting is good.
- Therefore, prices at the auctions have been wildly bid up in recent weeks. This is only in certain price points - generally $400,000 and below.
Buyers - truly there are better deals in the MLS right now. Ask your broker to look for properties that have been on the market awhile. If you have the time and patience, consider bidding on a short sale. These sellers are motivaed, and while there might be some bidding going on, you won't need to bring cash for the entire purchase amount before you've even looked at your new home.
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