Tips from the Practiced Realtor's Spot

Buying investment property at the courthouse steps seems to be a great way to get property for a bargain-basement price. However, as amazing as some of those deals seem to be, there are some big risks associated with purchasing property from a courthouse auction.

One of the biggest risks of buying investment property at a courthouse auction is that the condition of the property is usually unknown. Interested buyers typically cannot inspect the property prior to the auction, unlike if you were to buy property from a real estate agent. The potential investment property is still considered private property and interested buyers should not expect the right to inspect the property before they decide whether to bid on it or not.

While you most likely will get a great price when buying investment property at an auction, you need to include other costs into the price. The costs for renovation, repair and maintenance might wipe out whatever money you saved by purchasing a house below market value at an auction. More often than not, people who were going through foreclosure very likely could not afford to repair and maintain their property, or they were no longer willing to spend the money on something they were about to lose. Researching common costs associated with buying property at an auction can help you stay within your budget and increase your profits. It would also be wise to have money set aside in your budget for renovation and repair if you do decide to buy investment property at an auction.

Buying investment property at an auction might seem like a good way to save money, but it is important to look at all the pros and cons, especially if you are not familiar with the auction process. Doing some research prior to auctions can save you time and money in the long run. You should consider finding real estate investment advisor services or real estate investment fund if you are just getting started at buying property at courthouse auctions. Be aware that there is no money back guarantee at auctions. Cash is often due immediately if you have the winning bid. You need to make sure buying investment property at an auction is the best avenue to spend your money. It is important to know your budget and understand the risks and rewards of this method of buying real estate before you set foot on the courthouse steps.

About the Author:

With over 20 years of experience in northern Nevada real estate, Greg Hughes is an expert at buying investment property in Reno. His firm offers clients a great way to invest in real estate. For more tips about real estate, visit Reno Real Estate Investment Advisor Greg Hughes' blog.

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