Some are under the wrong impression that abandoned property held by the government are not for sale. In fact a quick survey of government auction sites will show thousands of properties up for sale, and that buying these properties at auction is not a difficult task at all. Not only is it relatively easy, but you can purchase abandoned property at government auctions at enormous discounts. This is the main advantage when you buy an a from a government auction.
Many are under the illusion that the type of abandoned property found at government auctions are mostly houses or bungalows, and are probably rundown, decrepit, or otherwise undesirable.
Property
While this may be so in some cases, most of these sales are for recently occupied homes, office buildings, warehouses, or other residential and commercial locations.
Unclaimed property, whether it is a bungalow or house, office building, etc., can be declared abandoned if for some reason the owner fails to maintain tax payments, zoning requirements, or other obligations. This can happen for many reasons. Death of the property owner or a name change if the owner got divorced or married will compel the government to declare it as an abandoned property. Unpaid property tax is another common cause for declaring a property abandoned. Before declaring it as abandoned, the government tries to locate the owner, or heirs of property owners. If the government fails to locate them, then they will declare the property as abandoned.
There are some obvious considerations to keep in mind. For instances if tax liens are placed against the property, then you will have to clear those liens before taking ownership of the property. While liens will be listed in the sale notification, they are not factored into the price.
Before selling abandoned property the government is required to place an advertisement in local newspapers declaring the auctioning of the property on a specified date. This is done to notify the original owner of the abandoned property that it once the property gets purchased in the auction, the owner cannot claim it back.
Since you can resell the property, this is one of the easiest ways to become a "real estate speculator". Many of these "speculators" have made fortunes simply buying property at auction and reselling them, often times not even occupying or even visiting the property after an initial evaluation. Some have become and millionaires by buying and selling abandoned property.
While you can find these auction notifications in local newspapers, a more practical means of locating these sales is through online listings. However, each government agency hold its own independent auction. A far more effective strategy is to subscribe to one of the many government auction membership sites, which aggregate these listings into a single site. Before signing up for one of these memberships, however, make certain their listings are kept both current and complete.
Buying Abandoned Property At Government Auctions
Reviews such as those published by Government Auction Site Reviews can help in choosing which membership site will best fit your needs.
Mr. Ullman blogs about Government Auctions, Police Auctions, and Real Estate Foreclosures at Government Auction Sites