FDIC Real Estate Auctions
Using FDIC Real Estate Auctions
The Federal Deposit Insurance Corporation (FDIC) often uses real estate auctions to recoup money lost to foreclosures. An FDIC real estate auction could give you an excellent opportunity to purchase residential and commercial properties at incredibly low rates. That makes FDIC real estate auctions a good way to purchase a home or buy an investment property that will earn you more income.
Exploring Options at an FDIC Real Estate Auction
An FDIC auction for real estate will usually include a wide range of foreclosed properties. These properties are sold as is without any guarantees from the FDIC or related businesses. That doesn’t mean, however, that you can’t make an informed decision when bidding at an FDIC auction.
To get a great deal on residential and commercial properties, you just have to do some research.
- Visit the properties before placing a bid. You can contact the FDIC to learn when the real estate is available for pre-auction inspections.
- Find out how much similar properties in the area are worth.
- Make sure the auction FDIC holds has properties that meet your zoning needs.
- If you plan to lease the property, you should do research to determine fair rental prices in the area. That amount should influence how much you are willing to bid at the auction.
- Set a maximum amount that you will pay for the property, and stick to that amount no matter what.
When you follow these guidelines, you will know which properties are right for you and how much you can spend on them.
Bidding on FDIC Auction Real Estate
When bidding on FDIC auction real estate, you want to get the most for your money. Auctions are a good way to do this because you get to avoid the painstaking negotiations before buyer and seller. You name your price and you wait to see whether you placed the highest bid. The key, of course, is to spend as little money as possible while still winning the bid. Research will help you do this, but some auction experience will also help.
This means you shouldn’t expect to win your first FDIC real estate auction. If you, that’s great. If you don’t, learn from the experience and start looking for another property that interests you. Give yourself some time to explore your options, lose some bids, and find the property that matches your needs best.