If you are looking for cheap homes, you can certainly find them at Louisville foreclosure auctions. In fact, there are 385 sheriff sale properties available now as well as 168 bank owned REO’s and 6 government foreclosed homes that serious buyers/investors can choose from. The auction homes are offered at deep discounted prices anywhere from 10% to 40% off market value. When you purchase an inexpensive auction property at a sheriff’s sale, you are purchasing the property as is with no warranties or title insurance. Be sure to do all your due diligence ahead of time to make sure the property truly is a good deal so there are no surprises. You are responsible for paying liens and assessments as well as removing former owners or tenants from the property. Homes are generally in need of repairs so be sure to allow for that when you are bidding.
For less risky investments, there are also 3,036 resale properties available in the Louisville area listed in the MLS. Sellers are motivated and some are offering seller financing and other incentives. The average price per square foot for a Louisville home is $101. The median sales price is approximately $141,900. Prices are up 12.2% compared to a year ago. However, the number of home sales decreased 89.4%. The average list price was $204,923 for the week ending February 16, 2011. Most popular neighborhoods are Deer Park, with an average list price of $204,104, Old Louisville, with an average list price of $205,167, Bellnap, with an average list price of $317,372, Bon Air, with an average list price of $126,850 and Hawthorne, with an average list price of $167,620.
Tips for Bidding on Louisville Foreclosed Homes
You should keep track of the home you want to bid by contacting the auction company or sheriff’s department to find out the up to date information about the sale and the minimum bid. If you are in the area, drive by the property and take a look at the condition and the area. You may be able to obtain information about the home from the neighbors or a chance meeting with the owner if they are still residing at the property. Auctions are published in the newspaper, but it is not uncommon for them to get cancelled because the owner pays the default amount or is in negotiations with their lender. So before you waste your time, make sure the auction is scheduled for the announced date and time and has not been cancelled. You can contact the county clerk’s office or call the sheriff’s office.
Also hire a title company or an attorney to conduct a title search to find out if there are nay liens on the property. The winning bidder may be responsible to satisfy the liens so you want to make sure that you checked and there are no surprises. You can also check the county recorder’s office on your own. Have a local Realtor, prepare a comparative market analysis for you so you know what homes are selling for in the area. This way you will know what to bid. If your bid is selected, you need cash to pay for the property. The property deed will need to be recorded. Expect it to take a few weeks before the recorded deed is sent to you. If no one bids at the auction, the lender buys the property back and sells it as an REO. REO’s are also good deals because they are sold at discounted prices. To purchase an REO, you should work with a local Realtor because REO’s are advertised in the MLS. The Realtor can write the offer for you and help you with the negotiations.