Foreclosure in 95148>Question Details

pam, Home Seller in 95148

Please discuss about Foreclosure/Trustee Sale @ Auction.com. Should I buy a home @ Auction.com?

Asked by pam, 95148 Wed Apr 25, 2012

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9
Before bidding on a home with REDC or any other online auction company you need to be aware of a few facts.

1. The properties on these auction sites are homes that were previously listed on the market but did not sell. Perhaps they were overpriced, in poor condition or in an area with either too many listings and too few buyers.

2. The minimum bid price (often quite low) is not necessarily the price that will win the auction. Often the owners will have a reserve price. I've seen homes come up for auction and presumably sell, only to see them be relisted on MLS after the auction. Clearly the reserve price wasn't met.

3. The auction companies charge a percentage 'buyers premium' on top of the price of the home. So you can add 5 percent to the purchase price.

4. Many of the homes that are offered are 'cash only' meaning that in the eyes of the auction company a lender won't write a loan for the property. So if you buy a cash only listing but you need to get a loan - and you can't get a loan - that's YOUR problem.

5. If the auction is taking place on site (as opposed to online) and you want to use a real estate agent, your agent will need to register you as their buyer well before the auction - or you will have to pay the agent out of your own pocket. They WILL pay for an agent, but the percentage is low.

6. You need to read ALL the disclosures, ALL the boilerplate AND do you due diligence before bidding. This is especially true when buying a home at auction as the rules are different and the process is less forgiving than buying a home on the open market.
2 votes Thank Flag Link Wed Apr 25, 2012
Dear Erika,

Please do your study before you bid! Make sure of all the liens against property through the title Co.
and check the current value of the property, consideration for the extensive damages, repairs including
termite works.

sincerely,

Steve Song
R.E. Broker Associate
Realty World, Golden Hills
408) 223-3603
1 vote Thank Flag Link Wed Apr 25, 2012
Erika, I can't agree more with Charles. If you are not working with an Agent/Broker to help you I recommend you find someone who will help you understand the market for which you are looking to buy in. Your advocate will help you to explore all options, including for sale by owners, off market properties, funds available from the city, and the foreclosure and distressed homes.

Us representatives here do this every day we have made a career out of helping people find and sale homes. Even though the internet has a lot of information the general public who is not in the trenches would have to invest a significant amount of time trying to learn the process when your agent get's paid by the seller to do this for you.

All the best to you.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Wed Apr 25, 2012
Hi Erika, read the fine print on the auction site & literature, the best information is always there. These properties are usually sold as-is with no contingencies which means you will likely not be allowed to perform a home inspection. Termites can be a major issue, as well as electrical and plumbing. Although you have the opportunity to get a great deal, these types of "blind" purchases are not for the faint at heart. Be sure to have plenty of reserves $ available once you become the owner for any issues that may arise. Additionally, I agree with Charles, do not limit yourself to Auction properties, there are plenty of bank owned (foreclosed) bargains on the MLS as well. You do not pay Realtor commissions in our area so hiring a professional Realtor to assist with your MLS purchase will not cost you anything. If you would like me to email you some REOs (Real Estate Owned=Bank Owned) properties available for purchase, please contact me through my Trulia profile. Kind regards.
1 vote Thank Flag Link Wed Apr 25, 2012
I do not see why you should buy a home at auction.com.

The homes at Auction.com are not bargains by any stretch of the imagination.

I recommend that to get the home that you want, that you do not limit yourself to Auction.com.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
1 vote Thank Flag Link Wed Apr 25, 2012
A couple of things you should know... the starting price is niot the minimum they will take, it is usually much higher. Next when buying from an auction you can not usually make the sale contingent on a home inspection or mortgage and lastly it is AS IS, they will not be making any repairs.
0 votes Thank Flag Link Sat Jul 21, 2012
Hi Pam

Prudent to consider learning all the facts about the property before making a bid as well as
The Neighborhood Comparables and crime stats or schools based on your priority.

It is prudent to work with a local professional to guide you through buying a foreclosed property.

Then consider whether auction.com makes sense or buying on court steps?

Good luck
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sat Jul 21, 2012
Don't buy at Auctions they always over bid for the property plus do your homework like Steve said look at everything that will cost you money on the deal. Are you a cash buyer? http://www.connectedinvestors.com/tersmt1
0 votes Thank Flag Link Thu Jul 19, 2012
I'd, few years ago, bought a foreclosure home at WilliamAuction.Com, which I had no chance to view that property until the day of auction. However it turned out to be good equity. The reason I want to buy house at Auction.Com is that the price there is fairly low and I'm available to pay cash, and still leave out some cash to fix it. Since I'm new to Auction.Com, I need all of your experiences and advices before I make my decisions. Thanks very much.
0 votes Thank Flag Link Wed Apr 25, 2012
I have bought 2 properties at auction.com. It was scarey but they helped me through the whole process. The homes were distressed but I knew that going into it. So just be prepared to do alot of cleaning and repairs. Overall I got them at a discount price and the process went as they said.
Flag Mon Aug 25, 2014
Hi Shareenlal,
Yes, I did go ahead anh buy a bank-owned from auction.com at the end of 2012.
I am considering of buying another propperty from auction.com early next year. Will update then.
Pls let us know if you did successfully buy any homes from auction.com
Thanks.
Flag Sat Jul 26, 2014
Hi Pam,

I was wondering if you did go ahead and buy a home on Auction.com. We're also considering that route and wanted to understand the considerations or watch-outs.

Thanks!
Flag Wed Nov 7, 2012
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