Many folks think that buying a house at an auction or a foreclosure sale (Trustee Sale) will be a great deal. Sometimes it is, sometimes it's not. On the plus side, if you happen to get super lucky, you could happen to pick up a great deal if there are no problems. You see, you cannot go into the house to inspect if there is anything wrong. Typically, there is always something wrong with the house. When I go on an inspection with my clients on a normal resale home, we find things 99% of the time as there is no such thing as a perfect house.
You may find that the roof is bad and could cost a lot of money to fix or replace. You may find out that someone had passed away in the house which can totally freak out people if it was not natural causes. Some people do not even like it if the death was by natural causes. You could find that the plumbing is all messed up, or that there are no toilets, no appliances, etc. You just never know what you will find.
And, when buying at an auction or trustee sale you need CASH. That's right, CASH. So, if you don't have the cash don't even bother. People that buy homes at these trustee sales or auctions get stuck many times with unseen problems and they plan on flipping the houses after they have renovated them. Then, they end up not getting as much out of the house that they thought they would which is frustrating for them. Many times, they have to hold on to these homes and rent them out until the market comes back a bit.
One thing I would suggest is to talk with the neighbors of any home you are interested in. This also includes normal resale homes. Visit the neighborhood during all different times of day and night to see if you like that is going on.
Good luck!
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
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