How to Navigate a St. Louis Foreclosure Auction
St. Louis foreclosure properties are great places to find fantastic properties at even better deals. If you know how to bid and choose good properties, then you can save yourself a lot of money and come out a little bit ahead.
Here is our guide to navigating a St. Louis foreclosure auction.
Learn how to bid
Before you go to an auction, you should research the rules and laws on bidding so you’ll know before you arrive.
After learning more about rules and laws, then you need to look into the basics of St. Louis foreclosure auctions. With foreclosure properties, the homes will be sold as-is, so there isn’t room to negotiate on repairs.
Before you head to an auction to buy, ask other investors about their experiences, and go to a few auctions to simply observe what goes on. This will prepare you for when you’re ready to bid yourself.
Research St. Louis foreclosure auctions
Once you know the basics, start researching foreclosure auctions in the St. Louis area. You can find them in a number of different ways, including:
- The U.S. Department of Housing and Urban Development keeps a list of its own foreclosed properties online.
- Mortgage lenders will also keep a running list of properties that have defaulted on the mortgage
- Newspapers and courthouses will also have lists of auctions that will be happening soon.
Once you’re ready, you’ll have plenty of great opportunities for auctions.
Check out the property
As mentioned, St. Louis foreclosure properties are sold as-is, which can be great and terrifying. For some properties, you might not need to do a lot of work, just clean up the front yard and touch up the paint. For others, you might need some serious renovation work; if you’re not up to that, then you’re going to waste a lot of money.
Before you head to the auction, do a title search of the St. Louis properties you’re interested in. You’ll find out about any liens or outstanding mortgages on the property. If possible, go to the property itself and look around. You might not be able to get inside, but inspect the perimeter and look in the windows to get a good idea of the property’s condition.
You should also ask your realtor if the price of the property is actually fair for the St. Louis neighborhood. If you aren’t familiar with the neighborhood, then don’t miss this step. It could save you from buying a bad investment.
Outline your budget
Actions can get going quickly, and you might feel tempted to bid and (over) bid on a St. Louis property you like. This isn’t always a good thing. A good property isn’t worth losing your shirt over, so before you go overboard with bidding, make sure you know what you can spend and how much a property is worth.
Define a smart bid
Using all the research and work you’ve done, place a good bid that will counter any other potential bids on the table and get you noticed right away. Don’t worry about what other people are doing. Just focus on yourself.