According to RealtyTrac, the average sales price for a foreclosure in Fort Wayne is $86,115. One in every 687 households received a foreclosure notice in March of 2012. Data released by Trulia shows the average price per square foot for a Fort Wayne home was $50.00. The median sales price for the period January 12 to March 12 was $67,458. There are currently 2,270 resale and new homes for sale in the Fort Wayne area, including 623 homes in the pre-foreclosure, auction, or bank owned. The average listing price for homes for sale in Fort Wayne was $136,528 for the week ending Apr 11, 2012, which represents an increase of 0.7%, or $975, compared to the prior week. Hot neighborhoods in the Fort Wayne area include North Anthony and Harrison Hill, with average listing prices of $94,916 and $52,543, respectively.
Why Buy at Foreclosure Auctions?
Buying a foreclosed home at a Fort Wayne real estate foreclosure auction simply is one of the best ways to acquire a property at a cheap bargain price. If you are a first time buyer or a new or seasoned investor, purchasing a property at a foreclosure auction gives you the opportunity to purchase a home in a neighborhood that you may not have been able to afford otherwise. You get to purchase a property that has built in equity. There are tax incentives you can take advantage of when you own a property. If you are looking for an investment opportunity, you will be able to rent the property out. You may have to make some repairs first though depending on the condition of the property. With interest rates being at historic lows, now is a great time to borrow money to purchase your auction property by using your line of credit or taking out an equity line against your current property.
Before you make a decision to buy a foreclosure auction property, you should do your due diligence by checking out similar home prices in the area and talking to a real estate foreclosure attorney to make sure you understand the foreclosure laws. Always confirm the status of the auction before attending the auction and making financial arrangements because many times foreclosure auctions get postponed at the last minute while a property owner is trying to negotiate with the bank to stop the foreclosure. If the sale gets postponed on the property you want, then you will need to track the properly to see if the auction gets rescheduled. You might want to choose a couple properties at the same auction in case one sale does get cancelled.
What You Should Know About Foreclosure Auctions?
Learning about how foreclosure auctions operate is recommended. First, the auctions are open to the public so anyone can bid as long as they bring a deposit and have the cash for the balance of the purchase price if their bid is selected. There are no warranties or representatives given with a foreclosure home purchased at an auction. All properties are sold in an as is condition. This means you should conduct an inspection of the property prior to the auction if permitted. The new buyer is responsible for paying off all liens on the property so it is important to have your title company conduct a title search to determine if there are any liens. You will want to budget that amount into your auction bid as well as any repairs that need to be made to the property. Also, you cannot purchase any title insurance on the property when you purchase it at a foreclosure auction. A local Realtor can give you a free market analysis telling you how much similar properties have recently sold for in the area so you have a ball park figure of the value of the home and can adjust your bid accordingly. If you are a new investor or first time home buyer, you should probably think about staying away from properties that need major repairs like a new roof, new plumbing, or new electrical systems, structural repairs, new heating and air conditioning systems because these items are more expensive. Stick to properties that just need minor cosmetic repairs like painting, new flooring, updating a kitchen and baths. These are more manageable repair projects and won’t cut into your profit margin as much as having to replace a home’s major systems.
While properties are still so affordable, it is a good time to invest in purchasing abort Wayne auction properties. Many buyers are taking advantage of these opportunities now in the Fort Wayne and surrounding areas. REO’s are also good buys and offer less risk. Short sales are also popular with buyers/investors right now and can be purchased at discounted prices as well.
