Back during the early 2000s the Jacksonville real estate market was experiencing some astounding success. Buyers were paying premium prices, sellers were generating substantial returns and investors were making a fortune. Things unfortunately aren’t quite the same now. Housing prices are low but in many cases, they’re still not low enough to the point where the average working class family can afford them, pay bills and make house payments all at the same time. If you happen to be in such a situation, real estate auctions may be worth investigating.
Auctions aren’t made up so much of new homes as they are properties that have fallen into foreclosure. Therefore, you should know that many of the properties may be “fixer uppers”. Assuming you’re dealing with a well-informed auctioneer, you’ll know about the majority of these things beforehand by taking a look at the home inspection report you should receive. Not all auctions permit you to view the property but for those that do, conduct your own walkthrough and evaluate how much the repairs will cost you. Sometimes the property is in such a poor condition that it’s simply not worth it.
Going back to these auctioneers, keep in mind that not all of them are honest. Before you choose to participate in an auction, familiarize yourself with the auctioneer. In most cases, the person will be a licensed real estate agent or a broker but there are those people who aren’t and are in it mostly to try and swindle you into paying more than you need to, usually by quietly using people they know as fake bidders who will compete against you and seize upon your inexperience. The same way you would if you were hiring a realtor or lawyer, know as much as you can about the person(s) you’re dealing with.
Auctions can become extremely competitive, especially when it comes to properties located in prime locations that require little to no repairs. Don’t get caught up in the fierce competition without having a limit of how far you’re willing to bid, always remember the winning bid is only a component of the other fees that follow. As you learn the ropes, you’ll eventually get a feel for how real estate auctions work and who knows, if you become good at it, they may become your preferred method of buying Florida real estate.
