Lots of Homes offered for sale here in Teton Valley Idaho thru auction companies such as Williams & Williams. What is the pattern and why are they not sold?
Steps to get there:
•1. Seller tries to sell for 12 months to pay off dept.
•2. Offered for 6 to 12 months as a short sale at or just below market value.
•3. Home gets foreclosed on and enters the market again as REO (bank owned).
•4. 5% per month reduction in price.
•5. 6 to 12 months later goes to auction.
•6. Auction Company charges a 5% buyers premium. Some Banks in partnership with the auction co. reduce the Real Estate Agents commission.
•7. Real estate Agent suggests buyers wait till action ends when it comes back to the agent?
Suggestions on how to buy at action:
•1. Work with a real estate professional that knows the market, has access to the local MLS and is willing to work with you thru several actions to buy one home.
•2. Pay no attention to what price has been set by the action co.
•3. Determine what the property is worth and be prepared to let it go if the price goes higher.
•4. Remember that the deal of a lifetime comes around about once every 10 days.
•5. Do the due diligence on the property and know what it is worth
•6. Only participate with auction companies that will allow an inspection period after the home is under contract.
•7. Have a plan for what you are going to do with the home after you purchase. Is it your primary or second home? Is it investment property? Are you going to put it into the short term or long term rental pool? Are you going to try to market it for a profit?
If you are buying property for investment purpose what is your plan? If reselling the property is your only plan you may want to seek advice.
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