Home Buying in 23455>Question Details

Roxxan Mcelr…, Home Buyer in

House is still listed and I see trustee sale is happening next month. Is it better to make an offer prior to auction if you have cash?

Asked by Roxxan Mcelroy, Tue Jan 17, 2012

This listing isn't listed as a foreclosure, but I see that it is listed for a trustee sale next month in the newspaper. If I have cash, is it better to make an offer before it goes to auction? Or is it better to wait until the auction happens or after? If it's listed at 200k in a normally 220-230k selling condo area, what would be a good starting offer?

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If you buy ahead of the auction, you eliminate competition. If you buy at the auction you MAY (or might not) get it cheaper. No guarantee with any auction. It's a choice that is not clear-cut. Of course, you may not be able to buy before the auction as the auctioneer could have put restrictions in for that - no auctioneer wants to spend money and effort planning and advertising an auction only to find the the owner sold it to someone else. If it says something such as "subject to prior sale" that means you can try to buy it ahead of time.

I would do that as, if you fail, you have the option of trying again at the auction. Before the auction, hmmmm, try 10% below the listed price. You can come up-if you want,; but it is hard to go down. At the auction, the problem is not how little you can get it for, but where you draw the upper line. Be aware of what a "buyer's premium" means (it works kind of like a sale tax) and keep it ion the forefront of your mind as you bid. Good luck!
1 vote Thank Flag Link Tue Jan 17, 2012
Roxxan,
Contact me and i will look the home up and see what the bank is doing with the home. I can look at the mortgage history and see what a good offer would be. I can look at the auction company that is selling the home and advise you of their normal procedures.

Kevin Monette 757-735-2628
0 votes Thank Flag Link Thu Jan 19, 2012
Roxxan,

If you can get a house at a good value, then you can go ahead and make an offer now. Buyers usually wait for trustee sales if they can't get the seller to accept a reasonable price. As for the starting price, the current listing price seems to be a reasonable discount. If you low-ball any further, it'll probably just go to the trustee sale where it'll be exposed to a new pool of buyers and competition for you.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Tue Jan 17, 2012
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