anybody ever bought a house at auction?

cindy-e · #1 05/21/12, 02:29 PM

Just curious. Something has come up in the continuing saga of the search for a homestead. hmmmm....

InvalidID · #2 05/21/12, 02:36 PM

I bought an Apt building at auction once. What's the question ?

uncle Will in In. · #3 05/21/12, 02:56 PM

Yes I did. Sold one that way also. Sold several on contract. How about you?? What's the problem.??

Sonshine · #4 05/21/12, 03:03 PM

I never did, but had a friend that got a house at an auction. It was a pretty nice one too.

Joshie · #5 05/21/12, 03:09 PM

Thought about it. I still wish I could have convinced hubby to buy the place. It was a beautiful farm and the barn was to die for. Went for about as much as this place and was much nicer.

Get an inspector to go through the place with you while it's open for viewing.

cindy-e · #6 05/21/12, 03:13 PM

a place has come up for auction we are considering. =0) Just wondered what your your experiences were - the good, bad and ugly. What advice do you have, since you have done it before?

Thx,

Cindyc.

InvalidID · #7 05/21/12, 03:16 PM

Make sure you have financing or cash already. You'll be required to put a down payment and if you can't scrap up the cash in time (for me it was 30 days) they'll get your money and auction it off again.

Sawmill Jim · #8 05/21/12, 03:23 PM

I'v bid on several, guess i'm just to cheep . Most auctions have the bid rules spelled out in advance also who is responsible for back taxes

In some cases just because you have high bid at the end don't mean you will get the place .Also foreclosures first sale the loan Co.will bid it in at what was owed on it second sale they can let it go as they see fit .Most auctions here state bank letter of credit must be furnished unless known by the auction Co. Some are 15% day of sale bal in 30days .

uncle Will in In. · #9 05/21/12, 03:32 PM

Most times a bank will be involved. You have to get their ok before you should bid, even though you may have the 10 percent earnest money deposit required at the auction. If you can't get a loan by closing time your deposit is never returned. Don't settle without them paying for title insurance. If someone later claims they have an intrest in the property, the insurance should settle with them. Also request a survey of the property. The expense of that should be agreed on before closing. If it is not sold as is, you will need to pay for a home and property inspection by a respected inspecter who should be other than the owners recomendation.
Get legal advice before you get very involved.

PaulNKS · #10 05/21/12, 03:35 PM

We've bought 4 of our 5 farms at public auction. One farm had a house on it. We had our money in advance and the checkbook. Some auctions will require a percentage of the sale price others will require a set dollar figure. For example that last farm we bought at public auction required $15,000 down the day of the auction (92 acres). The one prior to that was 40 acres and required $10,000 down. They all vary depending on the realtor, seller, and auctioneer.

As I said, 4 of the 5 farms were bought at auction and we got them for less than market value on all or we wouldn't have bought.

Jan in CO · #11 05/21/12, 03:45 PM

Does 'almost' count? We had an inspection done, got bank certified and then the nephew of the deceased owner got a cease and desist order from a judge so the auction never took place. I was so upset! Had the place planned out as to what we were going to do where, etc. Won't get that confident again. Do your homework, and it could be a great buy! Check with the county assessor as to any leins on the property.

One large section that was auctioned off last year near hubby's hometown didn't disclose that the water rights were all sold to someone else, but people who had lived there a long time knew it and didn't bid because of that. Good luck if you decide to go for it.

Sawmill Jim · #12 05/21/12, 03:56 PM

Here in this area you better get your home work in advance because un like what some say if you got high bid it may very well be yours the good bad and the ugly .You put your down payment on a un servyed property you get what you got .It is bought that day your 15% or what ever should you get fussy or default is gone and if a court house auction you are bared from any other auctions . .

If you want guarantees ,inspections or other things after sale good luck .

Molly Mckee · #13 05/21/12, 04:18 PM

We bought a VA foreclosure 25 years ago. We had no problem winning the bid and everything went smoothly. We bid an odd amount--86,776. instead of 85000.

Harry Chickpea · #14 05/21/12, 04:39 PM

Around here, large properties are auctioned off as parcels, and after all the parcels are "sold," bidding starts for the entire property as a whole, with the starting price of bidding being a dollar more than the combined parcel cost. That insures the seller of the highest price, but means that even excellent bids on a parcel can lose out to a buyer with deep pockets.