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5 Tips For Buying A Foreclosed Home At Auctions In Michigan

By Tabitha Naylor

Buying a new home in Michigan can be tough, with an unsteady local economy, hiking prices, and the still-significant unemployment rate. And while some think you need to pay a lot to get a great home, the truth is that there is still a place where you can purchase a home at a substantial discount from its normal cost. Where, you ask? Foreclosed home auctions.

In Michigan, you can look for foreclosed residential properties via reputable banks, realtors, real estate agencies, and from local publications, specifically in the legal notice section. Although there are a lot of homes being foreclosed and auctioned, not everyone can have them. That's why to get the best home at the best price, you should remember the following:

Tip 1: Be an Early Bird

The first few properties sold in a foreclosed properties auction are generally the most affordable; knowing when (date and time) such auctions will occur will give you a great advantage. Consulting local agents, asking for notifications from your chosen banks, or simply being vigilant in monitoring news can help you with this cause.

Tip 2: Do Your Research

Before going to a foreclosed home auction, you must know how much you need, should, and can spend. Gather data about recent real estate prices within your desired area and compare it with those being auctioned. Check several homes and their features, making sure you have three or more properties in mind before joining the auction. Also take note of the neighborhood where the properties are (this is especially crucial if you're think of buying and selling), what obligations (e.g., taxes, liens, etc.) are attached to them, and the like. Most companies conduct "open houses," and this is the best time for you to find out what the properties have to offer.

Tip 3: Have a Budget Plan

Before you go to any property auction in Michigan, it's a must that you have a set budget, a maximum amount you will bid. Otherwise, you might end up bidding too high and losing the property due to insufficient funds. It's also crucial to remember that auctions require a specific amount of cash or check to be presented at the beginning of the auction to validate your intent to buy. Always check with the auction organizer and local regulations what documents and how much money you need to bring at the actual event.

Tip 4: Dress Like a Pro

Aside from coming with complete research and fund, it's also advantageous to dress formally, come earlier than the set time, and seat as near the auctioneer as possible. With confidence, this will give you the aura of a lender and may help you avoid pricey bidding wars for your chosen properties.

Tip 5: Observe and Practice

Buying a foreclosed home at auctions in Michigan can be tricky, especially if it's your first time. To get a feel of how the auction process flows, what kind of people you will compete with, and the like, attending auctions as a spectator will be beneficial. When you do, specifically take note of bidders' personalities and the price range for different residential properties and use what you learn as a guide for your research and future bids.

Your next home or additional property doesn't necessarily need to be sparkling brand new. A foreclosed property bought in a local auction, with a few upgrades and repairs, can become a profitable venture. Participate in a Michigan foreclosed property auction, and you might just come across the house of your dreams.

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