Home auctions are an attractive option to purchase a home. Most home auctions involve the sale of a foreclosed home at less than market value, but they can also come with risks. While the real estate auction process is similar to other states in the country, there are some things any potential bidder should know before purchasing a home at a Missouri auction.
The Real Estate Auction Process in Missouri
The County may auction homes if the property owner is delinquent in property tax payments or by the mortgage holder if the property owner is delinquent in paying the mortgage payments. For property tax delinquencies, Missouri law requires annual auctions to occur on the fourth Monday in August, starting at 10 AM and continuing until all properties are sold or offered. About a month before the auction date, all properties will be listed on CivicSource.com. Generally, a list can be provided upon request by the County Collector’s Office.
Auctions that involve foreclosed homes are listed on HUD’s website and other third-party auction service websites. Some auctions are held in person, while others are online only. If you are interested in purchasing a home at a real estate auction in Missouri, some of the best resources for auction information include:
- ShoMeMore Real Estate: This site includes real estate and other types of auctions in Northern Missouri and surrounding areas.
- net: This site includes real estate auctions across the states of Missouri and Kansas.
- County website or publications: Each County Collector is responsible for publishing information on the properties that will be auctioned for delinquent taxes. A link to the listing of County Collectors is available on Missouri’s state website.
- Auction Houses in Missouri: These businesses will frequently list upcoming auctions on their website, although you may have to check them frequently so that you don’t miss any.
Once you’ve identified the home you would like in a Missouri auction, the rest of the process is straightforward. However, most homes sold at auction are bought by real estate investors who know what they are doing, so it’s a good idea to brush up on what to expect at a real estate auction.
What to Expect at a Home Auction in Missouri
Auctions are generally held at the site of the home, although they may also occur online or at the county courthouse. Unlike buying a home with a mortgage, you need cash to purchase a home at an auction, and generally, you have to provide the cash within a day or so of the close of the auction, so the first step is usually assessing how much cash you can use for bidding. If you bid on a tax-delinquent home, you must pre-register to bid at least ten days before the auction.
It’s also crucial to understand that auctioned homes are purchased as-is, meaning buyers generally aren’t even allowed to walk through the home before bidding on it. And since you take possession of the home almost immediately, there is no closing period, so you won’t have time for inspections. But you wouldn’t be able to back out of the sale anyway. Many auctioned homes are a risky investment since you won’t know what damage exists or problems may be present in the home until after it is yours. This is the reason these homes often sell for far less than market rates since the bidders have no way of knowing if it’s a good investment or if it will take a lot of money to fix it up.
Because these homes are purchased as-is, it’s vital that you research any home you are considering purchasing extensively. Looking at property records and other information online can give you an idea of what to expect inside, and you may come across additional information or photos that can give you an idea of what issues it had at a certain point in time. It’s also a great idea to check the County, City, State, and Federal records for any additional taxes owed, liens on the property, and listings related to dangerous or hazardous conditions.
Purchasing a home at an auction can be a great financial move – if the home is in good shape. If you purchase one that requires a lot of money to fix up, you may quickly regret the purchase. To learn more about Missouri Auctions and how to be successful at bidding, contact ShoMeMore Auctions today!
