Did you notice very many others looking at the place? I will return to this later.
You should check up to see if there are any mortgages, liens etc. on the property. It could be that there is a tax lien or something that the owner cannot pay, and it will become the responsibility of the buyer.
There could also be a problem with the title.
Your broker friend should be able to tell you what you need to check on. The point is that even if the house itself is OK there could still be a flaw that drags down the value.
The low price could also be a creative way for a seller to draw interest and get lots of bidders, knowing that someone will bid it up to its market value or higher.
That is why I asked about the turnout. If the auction is legitimate and not many people turn out it could sell at a bargain price.
In any case I’m sure this experience has sparked your interest and increased your knowlege of the ins and outs of real estate investing.
If this one doesn’t pan out, there are lots of other bargains around. They aren’t this obvious, you have to look for them.
I drug my husband and a friend of ours who is a broker and developer out there in the rain after church. I have some more information about the property and the auction. There is a number to call it is a Dallas area code I believe.
Anyway our friend says the house is worth every bit of the 74K. It sits on a corner lot and is supposedly over 4000 sq. feet. I only counted 4 bedrooms. It was probably built in the 70’s judging by the windows and countertops,etc…It has a nice yard, 2 car garage, workshop, den/gameroom, formal and casual living room, separate dining room. There does appear to have been some water damage (could have been pipes from second story. My friend says it appears to have a new roof. It wasn’t leaking when we were there and it was storming outside. There were many people looking. One of the people had spoken to whoever was “representing” the owners and they said there was actually a misprint in the paper. The auction will take place NEXT weekend.
I am going to call them to ask more questions. But before I do I’d love to hear from you on more things that I should ask about when I call.
FYI, since we own a lot in that neighborhood, I am familiar with that particular association, so that is not a concern for me, I don’t think.
My friend says he has never seen anything like this in our town.
THanks so much to all of you who have and will offer your advise and suggestions.
Opps, sorry I didn’t mention it in the previous post, but yes, the auction being a week away is the way to do it, according to the “How to sell your house in 5 days” book.
This is a text-book example. Being done exactly as the book prescribes.