Foreclosure Auction

This photo was taken outside of a home in Queen Creek, Arizona.  

Looking to buy your home at an auction?

 

The Phoenix Arizona real estate market has been hit hard by the downturn in home values, due largely in part to an almost uncountable number of bank owned properties and foreclosures.  If you’re in the market for a home, finding a foreclosure can be a way to pick up an even better deal.  There are several avenues to take when considering buying a foreclosed home.  One way is to buy at an auction.  Many times these auction homes are homes that haven’t been able to sell for many months, for one reason or another, and the owner (a bank or investor) is getting desperate to sell.  . 

 

Be sure to have REALTOR representation when you’re looking for foreclosed and auction homes.  An experienced REALTOR will be aware of the pitfalls and drawbacks of buying these types of properties, and will be able to protect you and negotiate for you throughout the process.  Using MLS and recorded sales data, your REALTOR will also be able to help you figure out whether or not the home is actually a good deal. 

 

Auction homes tend to be vacant for months, and possibly years, with no care, or maintenance for that entire time period.  Common problems with vacant homes these days are vandalism and theft.  From broken windows and holes in the drywall, to missing appliances and plumbing (copper re-sells for high $).  Because these homes are foreclosed, we assume that these homes have clear titles.  That’s not always the case.  Sometimes during the foreclosure process it takes a long time to figure out who really owns the home.  There have also been cases where the home hasn’t even been foreclosed on yet! – Check out this newsarticle  about an auction house that’s had a little trouble in that regard. 

 

So, with all of that said, a large part of buying an auction home or any foreclosed home will be your due diligence.  Be sure to view the property before bidding.  If you’re unable to view the property, make sure your contract is contingent on your final inspection and acceptance of the home.  Have a licensed home inspector go over the home when you’re under contract and in your inspection period.  A home inspector can find many things that are unseen to the untrained eye. Because many foreclosed homes in Arizona are sold as-is, you’ll need to know what your initial repair costs will be before the home is inhabitable.   

 

Consider a home warranty for at least the first year of ownership.  A home warranty will go a long way towards protecting you from unexpected failures such as you A/C going out in the middle of your first summer, ouch. 

 

Bank owned and foreclosure properties are an excellent way of picking up an excellent deal on a resale home.  Just be sure to protect yourself when buying, at a minimum have REALTOR representation, a contract contingent on final inspection, a home inspection, and a home warranty.  These things will keep you protected, and also ensure your great deal on that foreclosure home!

 

If you’re buying or selling a home in Maricopa or Pinal counties in Arziona, especially Queen Creek, Mesa, Gilbert, Chandler,Tempe, Phoenix, or Scottsdale, please feel free to contact me for more information.  Nathan@ezlistaz.com or visit my website www.ezlistaz.com get home selling information in Arizona, or search the Arizona MLS 24/7 for free!