Home Buying in Brooklyn>Question Details

onikablue, Other/Just Looking in Brooklyn, NY

Has anyone ever bought a home through an auction? Any suggestions? How difficult is the process?

Asked by onikablue, Brooklyn, NY Thu Aug 22, 2013

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It can be extremely frustrating: many auctions are cancelled at the last minute because the paperwork was not straight or the owner managed to file something to delay it again or managed to get a buyer at the last minute etc etc.
Of the properties that do actually hit the auction block, as the prior writer pointed out, you need cash for your winning bid, no financing options nor do you know what condition the property is in. You are buying it as-is with occupants sometimes.
It is not for the inexperienced looking for a home.
On the other hand Co-Op foreclosures, if you know the building well, can be a very good deal. So long as you do intend to move in and be a home owner. Investors cannot bid on Co-Ops.
Yours,
Kathryn Lilly, Broker
Realty on the Greene, LLC
718-858-7600
0 votes Thank Flag Link Thu Aug 22, 2013
Dear onikablue:

If you are not used to the process it may seem cumbersome and stressful. You have to be quick and decisive and prepared to move forward quickly if your offer gets accepted. Keep in mind that if it is a good deal you will be competing with many offers and often times the asking price is simply a guideline. In other words, sometimes the property can sell for above the asking price!

In order to even compete, you will need to be willing to show proof of funds/assets if you are purchasing all cash and if you are seeking a mortgage/financing you will need to show a pre-qualification letter from a bank along with proof of income, assets and maybe even your credit report. You should also have an attorney at the ready in case your offer gets accepted.

Also keep in mind that most properties that are auctioned will be sold in "as-is" condition. Make sure you do an inspection of the property so you know exactly what you are getting into.

The process as a whole is not too difficult as you will be having your attorney help you out as you move forward through the deal. The hard part is getting your offer accepted and then getting into contract. If I can be of further assistance or if you have additional questions, feel free to contact me direct. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Thu Aug 22, 2013
Such purchases are difficult and risky, therefore inform yourself well before considering the idea...
0 votes Thank Flag Link Thu Aug 22, 2013
VERY difficult. You can not make the purchase contingent on a mortgage or home inspection, some auctions make you responsibe efor back taxes, hoa fees or liens. It takes a lot of home work and cash to get a deal at an auction
0 votes Thank Flag Link Thu Aug 22, 2013
Are you referring to a Sheriff's Auction on a foreclosed home? These are not easy and usually only very experienced investors even try to go this route. First, you don't know what you are buying because there is no access to the home prior to the auction. A drive by of the property is as close as you will come to being able to inspect. Second, you have to put a good deal of money up within a very short time. And third, most of the time the property goes back to the bank as an REO, or a bank owned property, anyway. It's risky, to say the least.
0 votes Thank Flag Link Thu Aug 22, 2013
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