Real estate auctions offer a range of properties at different price points and include such things as single family homes, multi-family units, as well as some commercial properties and real estate notes. There are auctions for foreclosures, short-sales, and non-distressed REOs. Further, auctions can either be conducted online or in person.
Ways to Find Listings of Real Estate Auctions
New investors may only consider certain types of properties, such as single family homes or condos, where more experienced investors may look for 1-4 unit multi-family properties or apartment buildings. Certain types of properties are more prevalent in certain areas, so this may limit your options as well.
Kijiji and Craigslist
Kijiji, in Canada, and Craigslist (the stronger option in the USA), are excellent online sources of property auctions. They both provide quick and easy ways to find real estate auctions and then reply by click on the ad and sending emails. To help you get through the process faster, prepared ‘canned’ replies by pre-composing different replies for real estate agents, landlords, and property owners. Then, just copy and paste from your word program to the new email.
The property section of your local newspapers will pack in a lot of potential listings for estate auctions. Grab your cup of coffee or tea, kick back, and peruse the papers. Try to go through this process every week, more frequently if possible. Over time, you should get to know the ads that are being reposted over an extended period of time. This will indicate buyers that are likely to be keen to sell.
Property agents and brokers
Some types of properties might not do well with selling via MLS listing. They might do better with the sale through auctions. The real estate agents will be depending on the property auctioneer to win a sale of the real estate.
Watch out for keywords in the listings that will indicate a viable property for estate auctions. Look out for indications of short sale or foreclosure. Look out for properties listed as bank owned, corporate owned, or REO. These indicate that the listing is a foreclosure.
Where you come across potential properties for an auction listing, get in touch with the listing agent and let them know you can work as a broker’s agent with them. One possible concern is that real estate agents often believe, wrongly, that they will lose out on commission if they work with real estate auctioneers. In fact, the property agent stands to really profit as they get help with a possible difficult sale and they keep all of their commission except for the co-broker fee, which typically they are going to be paying to a selling broker anyway.
Banks and other lenders
REOs, banks, and foreclosures present a super source of auction properties as they want to sell the real estate as fast as possible.
Most banks and lenders list the properties they hold with their local property agents. Auctioneers have a choice. They can seek to work jointly with the real estate agent, who handles the property sale, or alternatively, they can contact banks and lenders directly in reference to the foreclosure real estate.
When contacting these finance company property owners directly, speak to the person who heads the REO department. They have the authority to accept your offer to include the property in estate auctions.
Accountants and lawyers
Foreclosure for other reasons is a rich source of properties for auction listings. As these real estates are often being sold because of bankruptcy, death or divorce, the owners or estates will inevitably seek professional advice from lawyers or accountants.
The various matters such as law, taxation, family relationships, outstanding items can make these properties complex affairs, leaving the owners keen to seek professional counsel. By building networks of contacts with lawyers who specialize in bankruptcies, divorces and tax matters, quality referrals for possibly motivated sellers can be gained. Look in local phone books, newspapers, industry journals, and web searches to find the professionals in your area. This is the same way the owners of the properties will look for them.
Real estate in foreclosure
Area RM offices and city hall are a rich source of free property information. During the process of foreclosure on real estate, default notices are listed in publicly accessible platforms. It costs nothing to search these public records.
Finance companies and banks are also required to publish notices about pending foreclosures. These notices are easy to spot in local newspapers. It is also worth checking for listed public notices of deaths and tax liens. The details of properties concerned are normally provided by estate agents and sometimes by tax lien notices. You have a right to get in touch with the property owners before the foreclosure.
Websites providing foreclosure details
The internet provides a wide array of websites dedicated to making foreclosure information available. The full information you need will not be immediately available. You’ll have to register to become a member. As the service costs money, make sure to research services like this to ensure they will provide the information that will work for you.
That’s a great list of seven key ways to access a superb amount of details about auction listings that will keep you busy and help you make a success in the world of real estate auctioneers.