Case Closed: The Buyer Can Often Have the Advantage with Closing Costs at a Real Estate Auction

November 22nd, 2010 by PA - Bloger
Real estate auctions are proving to be advantageous for both buyers and sellers alike.  With the golden opportunity of getting a great deal on a key property, benefits for buyers at auctions are on the rise. One of these benefits can include decreased closing costs.
Typical closing costs in a traditional sale include the down payment, loan fees, prepaid interest, inspection fees, appraisal fee, mortgage insurance, title insurance, etc.  These costs usually add up to several thousands of dollars for the buyer. With a real estate auction, the winning bidder can be responsible for many of the same costs, though sometimes these can be reduced. According to Frugalrealestate.com, closing costs with a real estate auction are sometimes “split 50/50 with the seller of the property.” There seems to be more flexibility with an auction sale versus a traditional real estate sale, where according to Dynamic Auction Solutions, “terms may vary from auction to auction… the Seller traditionally pays deed preparation costs and transfer or deed tax.” Real estate auctions offering foreclosed properties can provide major savings to buyers. MSN Money reports “…the savings may be twofold if the property is purchased from the lender who holds the mortgage that’s in default. That lender may be willing to waive some of the closing costs, maybe even offer a break on the interest rate or the down payment.”
Facts such as these are quite useful to buyers, especially with many choice properties offering prime investment opportunities. For example, LFC is offering a new 13,365 SF restaurant/bar in Stoughton, Wisconsin as well as a proposed 79 lot residential subdivision in Clearlake, California – both opportunities are lender-owned.  Looking for luxury? Check out United Country/Supreme Auctions’ 73-acre, 12,808 SF custom built home coming up for auction on December 7th. No matter what property you’re looking to live in or invest in, real estate auctions are providing endless opportunities with significant financial advantages for the buying market.

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