Foreclosure Bid Information

Bidding on a foreclosure is quite a different experience from buying a home the traditional way. A home is considered a foreclosure while it is going through the legal process and the foreclosure auction.

Research the Starting Bid

You can research the starting bid of a foreclosure online at many county websites. In many areas, the list of homes up for foreclosure is also posted at the courthouse.

Examine the Condition

The condition of the property will be a large factor in determining the price you are willing to pay for the home. You may or may not be able to gain access to the home, but if you can, you should. Foreclosures are sold "as is."

Check Local Comparables

This will help you decide what fair market value is, which will be a better indicator of sales price of the home. This is especially important if you are investor.

Determine your maximum bid

Once you have determined what fair market value is and what the condition of the home is, you will need to estimate your repair costs, holding costs and other purchasing costs. All these figures added together should not exceed the fair market value price, or it is a not a good financial deal. If you are an investor, you will want to factor in your profit as well.

Come prepared

You will need to have cashier's checks the day of the auction, so be prepared. In most states, 10 percent is required immediately following a winning bid, and must be paid by cashier's check or money order.

References

• Foreclosure Bid Info