Buying Foreclosures at AuctionPresentation Transcript
BUYING FORECLOSURES AT AUCTION
LISTENING TO THIS WEBINAR 2 Audio Broadcasting–Turn your computer speakers on!Audio Broadcasting allows you to hear the presentation over your computer speakers.You will see a small audio box on your screen. It controls the audio coming through your speakers. Do not close audio box. Do Not Close Audio Box
RICK SHARGA Senior Vice President DAVE LEE Senior Vice President PRESENTERS 3
BUYING FORECLOSURE PROPERTIES 4
BUYING TRUSTEE’S & SHERIFF’S SALES 5
FINDING TRUSTEE’S & SHERIFF’S SALES Sort by:
FILTERING TRUSTEE’S & SHERIFF’S SALES Filter by:
RESEARCHING PROPERTIES Opening Bid & Foreclosure Details Use Email Alerts to be notified of any changes to foreclosure status, market status, and market rating (i.e. change in list price)
RESEARCHING PROPERTIES Outstanding loans & loan position
RESEARCHING PROPERTIES Market value & comps
Market value based on AVM, comparable sales, and comparable listings
Map displaying location of comparable sales & listings
List providing details for comparable sales
RESEARCHING PROPERTIES List prices & listing details (if listed)
SETTING A MAXIMUM BID Using your research and RealtyTrac Property Analyzer, set up different scenarios to determine your maximum bid. A bid of $139,900 (asking price of home) would yield an estimated loss of more than $5,000 for this property. A bid of 120,000 ($4k above the opening bid at the trustee’s sale) would yield an estimated profit of nearly $15,000.
ATTENDING & BIDDING
Attend several times to observe before you attend to bid.
Watch what the regulars do and what properties they bid on.
Ask a regular to mentor you.
Never go above your pre-determined maximum bid.
Be prepared but patient.
BUYING BANK-OWNED HOMES Traditional sales Blah, blah, blah Auction sales Turn over to Auction.com at this point
Bank hires auctioneers to sell these homes for discounted prices. All Homes are Foreclosed Homes (REO) Open to the General public (do not need agent) Banks are motivated to sell the properties Better to sell than to keep on their books Homes Offered with clean title Buyers determine the purchase price in an impartial bidding environment Long negotiation periods are eliminated Closing usually takes place within 30 days of the auction, if not sooner 15 REAL ESTATE AUCTIONS SNAPSHOT
TYPES OF PROPERTIES 16
AUCTION TYPES 17 17
18 1 2 3 4 5 6 STEPS TO BUYING AT AUCTION
1000’s of Auctioned Homes Custom searching Save a search alert Brochure Download Auction Email notification Full property information Save properties to your profile 19 1. FIND YOUR HOME
20 1.1 UNDERSTANDING YOUR HOME
STARTING BID:The price that the bidding of the home will start at
PREVIOUSLY VALUED:The highest price the home was valued at in the past 5 years.
CURRENT BID: Current highest bid. The Bid you need to beat.
Auction/Property information View all disclosure Docs. Make sure you do your Due Diligence Contact Customer Service for questions Properties are open on three separate dates prior to auction. View homes and do all required inspections prior to auction 21 2. DUE DILIGENCE
Live Ballroom 22 3. REGISTER FOR THE AUCTION Online Only Recommend register at least 24 hrs prior to auction. Have Financial Docs (proof of funds) Prequalify if needed
Register for auction as early as possible
Have Financial Docs (Proof of Funds)
Submit Credit Card for Verification prior to bidding.
23 4. PREPARE FOR AUCTION DAY
24 FINANCING Cash Only Our Lenders Third Party Lenders You are free to use your own lender. However, be sure that your lender is fully capable of helping you finance Visit Auction.com to search We have partnered with the country’s largest lenders. Take advantage by pre-qualifying. Just click on financing button on property page. You are free to use your own lender. However, be sure that your lender is fully capable of helping you finance your desired home. Some properties are not eligible for financing. These properties can only be purchased by Cash. Look at the property pages to see if a property is cash only.
25 5. AUCTION DAY ARRIVAL BIDDING WINNING FINANCE CLOSING Bidding is FAST 30 Properties Per Hour Highest Bid Financing Available Free Pre-Qualification 30 Day Closing Period Sold Subject to Arrive Early and Check-in Properties that fall out of sale before the end of auction may be re-auctioned
26 6. WINNING
Your Winning Bid $200,000
5% Buyers Premium +$10,000
Total Purchase Price $210,000
5% Earnest Money Deposit $10,500
Cashier’s Check -$2,500*$2,500 or $5,000 depending on auction
Remainder-Personal Check $8,000
27 RECAP: WHY REAL ESTATE AUCTIONS
28 RECAP: WHY REAL ESTATE AUCTIONS
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