Buying houses at auction? - Posted by chicagomikeW

Posted by Jack E on March 01, 2007 at 16:41:13:

Right on and I might add what you don’t see may not be what you want!

Buying houses at auction? - Posted by chicagomikeW

Posted by chicagomikeW on February 28, 2007 at 14:17:57:

I am looking to possibly purchasing some homes at auction, does anyone know what the terms are to bid/buy?

Do I need all he cash at the end of the auction? Or do I have time to arrange financing? If so how long? Can have approval from a bank for financing, put money down and then close? That type of stuff,

Thank you

Re: Buying houses at auction?-Be Careful - Posted by Jack E

Posted by Jack E on February 28, 2007 at 17:12:37:

Most of the questions you asked have to be supplied by the terms of the auction. Each may differ. Buying houses at auction can be financially dangerous if you are not throughly educated on what you are doing.

If this is your first leap into R.E. it is probably not a good place to start. If it is not, go to a couple of auctions to see how they work and get all your questions answered. Do NOT bid. Watch what happens, especially if it is an open auction and the auction company is employing their floor walkers to hype up the bid. Then if you are still interested, make sure you understand all the terms like reserved offerings vs no reserve, what it takes to be an authorized bidder, certified check or otherwise, financing required, whether there are any charges to you on top of your bid, (there well may be), etc. Then be very careful when you do bid at any auction and set yourself a reasonable maximum that you would pay and DO NOT GO OVER IT! You may get more than you bargined for.

This is part of your “Due Diligence” which ofcourse you should have already applied to all the properties you are considering purchasing BEFORE you go the the auction. I cannot emphasize enough the strong need for due diligence. If you do not chech out the properties throughly and the auction operation throughly, you may end up with a properry for which you overpaid and may have title problems as well as physical problems like sink holes, termite damage or any number of problems. Good Luck, but approach it just like you should any other business deal, make sure you have all the facts!

Re: Buying houses at auction?-Be Careful - Posted by Natalie-VA

Posted by Natalie-VA on March 01, 2007 at 12:01:40:

I like to say, “What you DON’T see is what you get!”