If you are really looking for the best bargains, foreclosure auctions in Olathe, Kansas are the place to go. Foreclosure auctions have been attracting smart buyers/investors recently. Buying foreclosed homes at auctions is different from buying REO (real estate owned) properties or short sales. Auction properties are awarded to the highest bidder, and you must pay cash at the end of the auction. REO’s are bought directly from the bank by making an offer through a Realtor. Short sales are bought directly from homeowners, who are upside down on their mortgages, subject to their lender’s approval. If the seller has a Realtor representing them, then you can make your offer through the seller’s Realtor or your own Realtor.
Pros and Cons of Buying Property at a Foreclosure Auction
The advantages of buying a property at a foreclosure auction are mainly that the properties are sold at deep discounted prices. There is no real estate commission involved. Banks offer the properties for sale in an “as is” condition with no warranties or representations. You cannot buy title insurance so you should do your due diligence first before you decide to bid on foreclosed houses at property auctions. Also, you generally don’t get to conduct an inspection on the property so what you see is what you get. If there are any former owners or tenants still living on the property, you will be responsible for evicting them.
If the foreclosed houses do not sell at the property auctions, then the bank puts the properties on the market for sale by listing them with local Realtors. REO foreclosure listings are still good buys because they are sold at discount prices as well. You do get to inspect the properties, and title insurance is available with REO’s. The bank pays off all liens at closing. You can finance REO properties by obtaining your own financing. Although, banks prefer cash offers on their REO foreclosed homes. This way, they know you will close.
2008 CNN Money Magazine –One of the Best Places to Live
CNN Money Magazine ranked Olathe, KS #11 out of 100 best places to live in 2008 and #13 in 2006. Olathe is one of the fastest growing cities in the nation. Home to Honeywell, ALDI, Garmin and Farmers Insurance Group. Olathe is also known for hot-air balloons and sail boarding on its two public lakes. It’s not a surprise that investors/buyers are interested in purchasing Olathe auction properties. With a strong rental market, investing in foreclosure properties makes a lot of sense. There is always a high demand for good clean affordable rental properties.
So if you are looking for inexpensive homes, an Olathe foreclosure auction is the perfect place to find them. If you have never bid at a foreclosure auction before, you may want to check your local laws, as well as speak with the auction company to find out what their rules are so you don’t make any costly mistakes. You should also decide on a budget, and stick with it. It’s easy to get caught up in the excitement of bidding, so you don’t want to bid too high if the property looks like it is going to sell for a price over your budget. You need to allow money for repairs just in case the property has items that need to be fixed. So do your due diligence to make sure you are familiar with home values in the same area as the property you are bidding on. This way, there will be no surprises.