Buying property and houses pre-auction is a great way to purchase a home at an affordable price without the tension and stress of going through an auction process. Owning a home is one of the most satisfying achievements and often it means financial security for most people. Almost all people looking to buy a property are looking for something at a low price. Because houses and properties are so expensive, many people look into buying repossessed homes and properties because they are so much more affordable.
At a certain point in almost every individual’s life, they will look into buying a property. Owning your own home or owning a property as an investment is a great achievement. Many people save for most of their lives or spend the majority of their lives paying off loans for a property. This is because properties and houses are incredibly expensive. The majority of people throughout the world cannot afford to even pay off a loan for a property or loan while almost nobody can afford to purchase a property with cash.
What is a repossessed home or property?
Most homes and properties that are sold through auctions are repossessed. Because most individuals need to take out a loan with a financial service provider to finance their properties and homes, and because the financial situation of almost every individual is so unpredictable, there are many cases of homes and properties being repossessed. A financial service provider will want to see that a prospective client has a steady, reliable income that will cover their essential living costs as well as their loan repayments and interest. However, many people find themselves unable to afford their loan repayments because of losing their jobs or having an unexpected expense (like a vet bill or something similar) crop up.
Once an individual has missed a payment or has not paid a loan repayment in full or on time, the financial service provider who financed the loan will repossess the property. The financial service provider will usually hold on to the property for a short period, allowing the individual to try to make the missed payments, but if the individual does not make the payments the bank will sell the property or home on to make up their lost money.
Describing and explaining a repossessed home is significant in this context because the majority of homes for auction are repossessed properties. The financial service provider will either auction the property off themselves or hand it over to an auctioneering house to sell it for them. Aucor is one auctioneering house that auctions off properties for financial service providers. Standard Bank sells their own repossessed properties from their website My Roofs.
Buying property and houses pre-auction
Usually before an auction, homes and properties will be rated in terms of how popular they are with potential buyers. Houses that are thought to bring in more money will go ahead for auction while lower rated properties and houses might be sold off pre-auction. This is often an area where property seekers will save money on purchasing a home or property. The best way to find houses and properties pre-auction is to look for auctioneering houses or branches of financial service providers that auction off houses and properties.
Contact these businesses or organisations and ask them whether they have some properties or homes that they may be willing to sell pre-auction. It is also a good idea to keep up to date with the houses and properties that will be coming up for auction in the area (or areas) where you are looking to buy. Inspect the property and look carefully at the advertisement and if you are interested contact the owner to see if they may be willing to sell the property pre-auction. Many owners will be very happy to get rid of a property sooner rather than later and this means that you can negotiate the price with just the owner rather than having to compete with other potential buyers.