According to Texas Public Radio, San Antonio's median home price in January 2024 was only $299,000. For comparison, Houston's was $315,000, Dallas's was $351,000, and Austin's was $485,000.
All those figures should tell you that San Antonio is an ideal place to invest in real estate. But there's even more good news: By buying properties via real estate auctions, you can unearth a gold mine for much less.
Join our team at PMI San Antonio as we share auction investment strategies to help you navigate the Texas real estate market in Alamo City.
Determine Your Risk Tolerance
One of the most crucial steps to navigating San Antonio property auctions is understanding that these houses could have all kinds of problems. Many properties sold at auctions are in foreclosure, after all. As reported by KENS5.com in March 2023, in the first half of 2022, Texas had about 11,500 foreclosed homes, hundreds of which were in San Antonio.
Remember: Foreclosed homes used to belong to someone who failed to pay their mortgage or property taxes. As such, their owners were likely unable to afford necessary maintenance or repairs.
If you have a high-risk tolerance, you can consider buying properties at auction sites and then flipping the homes for profit. But if you're risk averse, you may be better off sticking to traditional home sales.
Consider Auctions Offering Open Houses
Many auction properties don't provide buyers the same level of access as homes sold traditionally. They usually don't permit shoppers to walk through and inspect the property. If you don't want to risk it, look for auction companies offering open houses and property showings.
Check for Liens
Before bidding at an auction, work with a title search company to determine if there's any party holding a lien against the property you want to buy. If you make the mistake of purchasing a home with a lien, the claim will transfer to your name, and you'll be responsible for paying it off. Examples of liens you should check for are:
- Second mortgages
- Property tax liens
- Contractor liens
Ensure the Property Has No Occupants
Even if you can't inspect auction properties, you can sometimes tell someone is occupying them from the street or curb. Look for signs of unwanted occupancy (AKA squatting), such as lights from fires set up at night.
If you buy a squatter-occupied property, you'd have to go through the trouble of evicting them. It's a lengthy, stressful experience, so you'd want to avoid it and ask the auction company whether they know if someone is squatting in the home.
Need Expert Help With Real Estate Auctions?
Real estate auctions can help you find San Antonio homes for sale at low prices, but they can be complex and risky. So, if you want more confidence when buying and selling real estate in Texas, consider partnering with real estate experts.
PMI San Antonio is your go-to for expert real estate brokerage and management services. As a locally owned and operated firm, you can rely on our local knowledge and expertise of Alamo City's real estate market. We're also part of PMI, a fast-growing real estate and property management company with over two decades of industry experience managing $5+ billion of assets.
Speak with us today for a free consultation!
