Have you ever bought land at auction?

[PulpFaction]

Has anyone ever bought land at auction? I just learned about this: http://www.grubstakeauction.com/PWS2010.htm

PWS is rainy, but beautiful. Good fishing. It's less than 30 miles to Valdez, so it wouldn't be impossible to get building supplies out there by boat. The lots are mostly very small, but the odds of many of them being used much if at all in the near future is very slim, so it would still seem like we were extremely secluded.

Hunting in that area should be good, as well. Bear, and a kind of deer but I forget which kind. Sheep and goats are probably in the vicinity, definitely the usual rabbits and ptarmigan.

Plenty of fresh water available, that's one of the perks for Prince William Sound that you don't find in a lot many parts of AK. Get my rabbits out there to start making some compost to mix with the peat and muskeg for a garden, build a good tree house with a composting toilet, and we just might be set.

Ugh, it would either take fort knox or a very good LGD to keep bears away from chickens and goats, though. I've heard they don't mess with rabbits so much since they're so quiet.

Anyway, I think I'm going to talk the BF into going on Monday. It just so happens that I have $500 burning a hole in my pocket. Any caveats from experienced land auction attendees?

[PulpFaction]

Whoa, just found this lodge in the same area: http://ravencroftlodge.com/index.html

Check out the video, pretty cool stuff! The bf is balking at the drive to Fairbanks, but I don't think I'm going to quit on this one. I have a few days yet to wear him down and convince him!

[springvalley]

Rachel, auctions can be a great way to get something. Just know ahead of time what you want to spend, and don`t get caught up in the circus of an auction. And make sure the auctioneer doesn`t slip a few air bids in on you. Make sure the property has no liens on it and the back taxes are paid. O.k. I looked at the site, I am so glad there is a place for everyone. But that one is NOT for me, anyplace you need a boat to get to can`t be good for me, anyway good luck and have fun.>Thanks Marc

[SirDude]

All the real estate investors I know / deal with, say,

- Know the "best use" price of the land before going
- Write your "FINAL" highest bid down before you go and stick to it and don't go one penny over it. This will help prevent you from doing last minute calculations while at the auction. As Marc said, don't get caught up in the action, they move fast for a reason, they want you excited and not to have time to think clearly.
- Don't forget to figure in the auction premium, extra cost, etc. again, BEFORE you go.

My opinion, try to go to as many as you can before you get into the market to buy something.

OH, and remember Donald Trumps' quote, "the deal of a life-time comes around about once a week." So don't get frustrated when you see a great deal and can't jump on it.

[texican]

Do you have a boat? Or Plane? That'd be the first thing I'd be thinking.

Second, do you like living in a subdivision? Are there homeowner agreements?

Personally, a subdivision would kill me... one in the middle of nowhere? Now I'd take a 'lot' if it were the only one there.

Is there internet? Utilities? Will you both have jobs you can do in such a location?

Look at all the angles, and not just the down payment, and if you think it suits you, go for it.

Good luck.

[superslamsam]

Do you have any idea what the lots will be going for approximately?

[65284]

Not trying to rain on your parade but did you actually open that link and read the information, including the fine print? More importantly, if you did, do you understand what you read? Did you read the terms and see there fees to be paid to a bank that the interest rate is 8%?


Did you notice they very casually mention, buried in the fine print, that there may be covenants and restrictions, and you have to go the seller’s office to see copies of them? That’s a huge red flag to me. Are you sure tree houses, composting toilets and rabbits are allowable? It also says you have to do your own locating of any lot you buy, if it's just platted and not well marked/staked that may mean hiring a surveyor. Now is the time to find out the answers to questions like these rather than after you have obligated yourself.

I suggest at the very least you hit that office, do a lot of deep digging, ask lots of questions and see exactly what you may be getting yourself into, then physically locate the lot(s) i was interested in. I personally wouldn't touch this with the proverbial 10 foot pole until I had done these things.

[PulpFaction]

I am planning on going by the office tomorrow. Calls to the water taxi to price out what transportation costs would be revealed some of these lots had been sold before, disappointed the buyers, and were back on the market. A quick Google search shows some of these lots either go unsold, or the contracts lapse and they have gone back on the market.

I can definitely see how many if not most of the lots would disappoint someone expecting a "subdivision". It's a common misconception for anyone that is unfamiliar with buying remote property in Alaska. These places are platted and subdivided, but 95% is never even seen by the buyer, much less used. Some people use the lots a few times every few years for a recreational base camp, and even fewer will actually use the land for a seasonal residence, much less a year round one. That's just the way it goes with remote land sales in Alaska. It's not an easy life, but the idea is romantic and lures lots of people in after watching "Into the Wild" a time too many.

There are no covenants or restrictions on any of the lots on this property, aside from the requirements for sewage treatment. (Chemical or composting toilet is the only currently allowable solution, unless specific permit is granted by the state office. I can handle that!) The region is well-known for it's past as a gold rush bonanza and mineral rights are included in the sale, which is appealing from the stand point of someone that is getting into recreational gold panning. (We would only consider lots that have the creeks running through them, for this reason and for water.)

As far as a high interest rate, expected, and I'm ok with it. There is no qualifying, the seller carries all risk. I have NO credit and no interest in acquiring any, so even half way decent land with these terms is something I have to look carefully at because it isn't available everywhere.

And, even though it is remote and only accesible by boat or plane, it is actually much more accessible than most of the remote property available in the state.

So, those are my reasons for continuing to look into this for the next 5 days.

Thanks for the advice about setting my limits before-hand! I'm definitely doing my research.

[Bandit]

Hi Rachel
I have to be open up front that I am a " very negative person " and I have to work Very Hard to think Positive , I did a little Googling on the land and auctions and after reading there " Legal Descriptions an looking at pictures of the land , "I think I would just walk away .
You even received some Very Negative reports from a Local Water Taxi Owner . There description of Undulating Terrain with Steep Slopes Greater than 30 % seems to back up what the water taxi owner told You ? I would call a few more locals or stop in town for a coffee and ask a lot of questions.
It also looks like one of the Copper Mines is up and running again . Contamination from Mine Runoff comes to mind ???
Did You notice on the Disclosure Statement under " Subject Property Data " that the area was originally a Patented Mining Claim ? and that most of the shafts and equipment are still there ? You can see tracks in one of the pic's .
You get the Mineral Rights to Your small lot , but DO NOT have Unrestricted rights to prospect or mine on Your Land ,The State and Feds control that (National Forest Service )
Also that the lots are too small for a septic system , and the type of soil will NOT Allow Approval of an Out House .
I hope I gave You some points to ponder over
Bob

[Jan Doling]

Our neighborhood was an auction project...the developer went broke and the bank had to divest itself of the land because it couldn't perform as a realtor legally. So at the auction they put up a map showing the roads and plots and how many acres each plot was. When the bidding started it was not for a particular lot. Instead when my husband won the bid, he was given first pick of the plots on the map. Being from England, he chose the one with the largest acreage, which turned out to be mostly swamp (yes, we bought swamp land in Florida!). I like the swamp...it is a good buffer and gives us lots of privacy and keeps tresspassers away.

[Old Vet]

In this area I go to a lot of auctions. When you bid and the biding stops they go to the owner and ask him if that is enough. A lot of the time it is not enough and biding starts over if any bidder want to bid they can but most of the time they will not so it is not soled. I am not sure if in that state as to the procedures may be. I doubt if there are no reserves on the biding process so the owner can get at least what he wants for the property and maybe more.

[PulpFaction]

Well, I guess buying land sight unseen is always a gamble, but in this case at least I can make it a somewhat educated gamble. After talking to a number of people in the area and reviewing other photographs from other sources, I know the only ones I would feel like I might come out liking are the ones that are waterfront, so that narrows it down a good deal. I also have some good comps to use for price comparison the next bay over, which has a lot more "knowns" and is a larger lot, so I know that I would be willing to pay a good deal less for these unknown plots...

Still not sure we'll do it. It would be several years before we could use the property, but I'm ok with making the investment now if it turns out being a good deal. And I'm ok walking away if it doesn't.

[Bandit]

Originally Posted by PulpFaction

Well, I guess buying land sight unseen is always a gamble, but in this case at least I can make it a somewhat educated gamble. After talking to a number of people in the area and reviewing other photographs from other sources, I know the only ones I would feel like I might come out liking are the ones that are waterfront, so that narrows it down a good deal. I also have some good comps to use for price comparison the next bay over, which has a lot more "knowns" and is a larger lot, so I know that I would be willing to pay a good deal less for these unknown plots...

Still not sure we'll do it. It would be several years before we could use the property, but I'm ok with making the investment now if it turns out being a good deal. And I'm ok walking away if it doesn't.

Rachel
You definitely have the right attitude on this deal , Not having to win one and being able to just walk away .
Bob