Is a Condo Auction right for you?

Article Written By: richardsoto001

Purchasing a condo through an auction may be very beneficial to you, in terms of price. However, there are a number of things you will need to do before you show up for a condo auction and expect to purchase a Houston condo.

First of all, you can expect the process to be similar to any other type of auction. You will likely need to register and show identification. In addition, you will need to come prepared with a cashier s check. The value of your cashier s check will vary depending on the expected selling price of the condo and the starting bid.

The cashier s check that you will bring will be put into an escrow account upon winning the auction. In general, most building developers will require the cashier s check to be at least 10 percent of the sales price. If your cashier s check falls short, most developers will give you at least 10 days from the end of the auction to produce the money equal to 10 percent of the sales price for your down payment.

Another requirement will include proof of financing, which is typically due within a month to 45 days after the end of the auction. Most buyers will come prepared with their loan preapproval beforehand as to avoid any delays in the process.

You may attend a developer auction, which usually comes with a longer time frame than a foreclosure or bank auction, so be aware of the time differences between these types of auctions before starting the process. Bank auctions and foreclosure auctions usually require that the buyer come with the down payment and a loan pre-approval.

It is important to do your research before attending an auction for Houston condos, whether it is a lender auction or a bank auction. Research the auction company and study the fact sheets and property descriptions thoroughly. In addition, auctions typically come with their share of legal disclaimers, so take the time to understand these before embarking on an auction purchase.

Many buyers also take the time to really get to know the building in which the condo is located. It never hurts to research the condo building, the developer and the HOA. You may even want to take the time to talk to current residents about their experiences with the building and the HOA.

There have been many condo auctions for Houston condos over the last few months, including the Edge Condominiums, which recently sold 27 units through an auction sale. The developers of the Edge wanted to liquidate their remaining inventory, and did so through an auction. Bids for these Houston condos started between $90,000 and $140,000, which was a far cry from their initial sales prices of between $219,000 and $364,500.

About the Author

Whether you are a seasoned buyer or first-time home owner, make the right residential choices by reading VIP Realty’s timely analysis, which encompasses the Houston homes for sale and Houston condos markets.

You Can Link Directly to "Is a Condo Auction right for you?" by using the url:
http://www.allbestarticles.com//finance/real-estate/is-a-condo-auction-right-for-you.html

This Article Has Been Published on Tue, 14 Sep 2010 and Read 247 Times

Find All Best Articles at http://www.allbestarticles.com

Rating: Not yet rated

Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

Related information on Real Estate

Why do I need a conveyancing solicitor when buying or selling real estate?
London Living: The Best in the World
Real Estate Toronto Neighborhoods and Property Hunting for Leases
The Affordable Secret of Mayfair Office Space
10 Ideas To Follow When Selling Your House
Property in Belgravia - London's Centre of Architectural Splendour
Is Abu Dhabi facing Dubai-like property slump?
Chesire England Serviced Offices.
Find out About Relevant Ideas To Choose Horse Stables
Pros and Cons of locating an office in Mayfair
Things to keep in mind when choosing where to locate an office in London
Guide To Buying A 2 To 5 Million Dollar Home In The Dell In Hollywood
When Selling A Home On Sunset Plaza, Point Out The Exclusiveness For The Fastest Sell
An In-Depth Look At The Toronto Home Market
What a Phoenix Real Estate Listing Will not Show That A Neighbor May
Which are the prime areas for office space in London?
Tips to make the most of your office space
How have commercial property prices in London been affected by the recession?
Benefits of working in Covent Garden
Investment opportunities in Pakistan Real Estate sector
Quit Claim Deed Basics
Dubai The Place To Be In Terms Of Property
Buy House in Philippines
Best way to write professional advertisement for Dubai properties
Things to consider while getting a house on rent