contract and he will have to deposit at least 10% of the contract price or $2,500 immediately after the auction. • If the property isn’t closed on in 30 days or less, the buyer forfeits the deposit, which will ensure that only serious buyers apply for the auction.
CONS
• The biggest downside of an auction is that it is unpredictable. The outcome is uncertain, and you can be left with much less than you were hoping for. This can be mitigated by setting a reserve price, but remains a problem. • You must hire a skilled professional, and skills come with a price tag. • There is no guarantee that you will successfully sell a property at auction. In fact, only 75% of property auction listings achieve a successful sale. • Regardless of whether your property sells or not, you must cover the costs of the auction.
SELL TO AN INVES O AN INVESTOR
“We Buy Houses,” or “We Buy Ugly Houses”—you see the signs on telephone poles at intersections. Real estate investing is huge business. There are many top-notch real estate investors in almost every city. They are always “on the lookout” for a new purchase, and you should be able to find one rather easily. However, beware of scamming. There are many scams, which means that you need to find the right investor to avoid getting swindled. According to the Federal Bureau of Investigation, reported cases of mortgage fraud have skyrocketed in line with
43
Powered by FlippingBook