Any of you guys buy property at Auction?

PRE-H20 · PRE-H20's Garage

hey guys.....

just looking for some insight...... im looking to buy a property at an auction in a couple of weeks, but have NEVER bought through this avenue. any of you done this?

i have read up alot and have alot of information but wanted a 3 party opinion.

i have already walked through the place and am interested in moving forward.

all opinions and comments are welcomed and appreciated.

thanks!

Mo_Gearhead · 03-24-2009, 02:21 PM

Pre-inspection is CRITICAL.

At (most) auctions you are buying "as is/where is" with NO warranty/guarantees, etc. ...with the exception that the auction company will promise to deliver a "Clear title" (we are assuming they are reputable).

If it's raw (undeveloped) property/land, you will want to see what easements (utility, municipal, etc.) it may be subject to, check with the county/city.

If it's a home/building ...do your inspections, or hire it done.

Here (Missouri) they will pre-announce if the item has a 'reserve' or indeed sells to the highest bidder, no matter what the ending bid.

Good luck.

PRE-H20 · PRE-H20's Garage

mo-gearhead.... its a condo..... nice place in a great area..... there were several condos going up for sale.... i went through the place and it looks really good.....

needs some TLC, paint and new appliances......

i am VERY experienced with auctions on that car side but never bought property...... if someone can just say its the same idea as cars then im good...... but i was looking for some insight from someone that has the experience......

makes sense?......

if the concepts are virtually the same then i have peace of mind.

Mo_Gearhead · 03-24-2009, 02:54 PM

Good to go then, if you have previous auction experience.

You may wish to contact the auction company to ask about the down payment due that day, after the gavel falls. Here, they usually want 10-15% and then they will tell you about the final settlement date (here, usually 30-40 days after).

Also, the seller/buyer usually split the property taxes based on the final closing date. You will want to confirm that also.

And you already know...to determine your TOP PRICE ...and do NOT EXCEED it!

Auction frenzy/bidding (and testosterone) can make one get silly.

bell · bell's Garage

Quote:

Originally Posted by Mo_Gearhead

Auction frenzy/bidding (and testosterone) can make one get silly.

That's why barrett is fun to watch..........it's fun when it isn,t your money

DasBoot · 03-24-2009, 03:43 PM

Also be aware of any outstanding liens. The auction gavel is not absolute (neither is the closing).

There was a story here of a young couple who purchased a home at the County tax auction...no-one bid against them. They landed the home for something like $75k (probably worth around $150k at the time). Later, they discovered liens totalling over $200k.

Dantilla · 03-24-2009, 07:44 PM

The real estate auctions I've attended require payment in full on the spot. You need to show the auctioneer a Cashier's check for at least the minimum bid in order to bid. If you are the top bidder, you must give him payment right there.

As you don't know what the winning bid will be, the normal thing to do is have a big check for the property you want, plus a few extra $5000 or $10,000 checks, as much as you're willing to pay. You will be refunded any amount over the winning bid upon closing.

There are bargains, but only if you do your prior homework. Having a friend in the title business who can research properties is a big plus.

look 171 · 03-24-2009, 11:32 PM

Pre-h20,

How did you find out these auctions? I am also looking for some property up here in the LA area. I have heard that one could really get a great deal at suctions but never looked into it. I am looking for the beat up homes or dual or tri-plex.

Big Ed · 03-25-2009, 04:59 AM

Quote:

Originally Posted by DasBoot

Also be aware of any outstanding liens. The auction gavel is not absolute (neither is the closing).

There was a story here of a young couple who purchased a home at the County tax auction...no-one bid against them. They landed the home for something like $75k (probably worth around $150k at the time). Later, they discovered liens totalling over $200k.

Outstanding liens are the killer. On a condo, you need to know of municipal liens plus any back condo fees due -- verify on a Certificate of Municipal Liens and a Condo 6-D Certificate. This info is usually available from the auctioneer.

PRE-H20 · PRE-H20's Garage

look 171,

I have a friend that is in the title business that has turned me onto some properties..... she has a client that buys tracts of homes so the volumne is there. this one property has piqued my interest. i will let you know in a few days. there are a few auctions coming up.

big ed,.... thanks for the insight, this property is free and clear, already hadmy friend check on it!

dantilla,..... i already checked with the auction and am aware of the requirements.

thanks for the comments guys... keep em coming!

look 171 · 03-25-2009, 02:18 PM

Quote:

Originally Posted by PRE-H20

look 171,

I have a friend that is in the title business that has turned me onto some properties..... she has a client that buys tracts of homes so the volumne is there. this one property has piqued my interest. i will let you know in a few days. there are a few auctions coming up.

big ed,.... thanks for the insight, this property is free and clear, already hadmy friend check on it!

dantilla,..... i already checked with the auction and am aware of the requirements.

thanks for the comments guys... keep em coming!

Thanks. If you have any leads or contacts please share them if its ok with you or your contacts. I will be happy to help you look at the homes with you and let you know if they are good or not. I am a contractor.

jeff

PRE-H20 · PRE-H20's Garage

look 171,

your username sounds really familiar.... why?...... have we talked cars before?

Alex