As we head into the new year, can Layton investors expect any significant real estate market changes? According to Norada, the changes on the horizon may not make it easier to buy new properties. While the cost of homes may only increase a bit, mortgage rates are expected to go back up.
What if we told you there's a way to get around the traditional market and tap into unexpected opportunities? We're talking about real estate auctions, one of the most overlooked ways to purchase a home.
What should you know about auction property sales and how can you improve your approach to real estate bidding? Read on to find out.
Types of Properties Sold at Real Estate Auctions
First, let's talk about the types of properties you can expect to find when buying auction properties. Auctions cover a wide spectrum of real estate, and with the right know-how, there are properties for every type of investor.
On one end of the spectrum, you'll find empty lots and as-is homes. The owner may be the one doing the auctioning, but it's more likely that the property is up for auction due to delinquent mortgage or tax payments.
On the other end of the spectrum, you'll encounter luxury real estate. Luxury sellers often prefer auctions because they attract competitive bidders who drive up the price and buyers who can pay outright in cash.
How to Find Auction Property Sales
As you might expect, you're not going to find auction properties on the average MLS. You may find luxury properties through specific websites that specialize in high-priced properties, like Sotheby's International Real Estate.
For more affordable properties, keep an eye on websites like the Davis County delinquent tax sale site. Properties go up for auction each May, and you'll find more information on the available listings starting in March and April.
Property Auction Tips for Buyers
Before you start attending real estate auctions, make sure you know what to expect to protect your investment. We recommend:
- Establishing a set budget before bidding starts
- Researching the property (and visiting it if possible)
- Getting mortgage pre-approval if you can't pay outright in cash
Note that most auctions require the successful bidder to place a hefty deposit to hold your place as the buyer. This deposit may range from five to ten percent of the property's total value. Make sure you're prepared to pay that amount right away before you make any commitments.
Learn the Layton Market With PMI Home Team
It seems that Layton may not see the price and interest rate drops we hoped that 2025 would bring. Fortunately, there are other options for investors in the region, and real estate auctions are one of them. Use this guide to track and prepare for real estate auctions in the coming year.
Looking for more insights and market trends here in Layton? PMI Home Team is here to support real estate investors every step of the way, from purchasing to renting. Contact us to partner with Layton's premier full-service real estate management firm.
