Buying house at auction? Can persons who are not real estate professionals purchase a house through the auction system? If so how does that work.

Asked by Kc Czech, Tucson, AZ Sun Aug 14, 2011

I am registered with auction.com but am still confused by the two different types of auctions listed. thanks,k

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10
George Szkup, , Tucson, AZ
Sun Aug 14, 2011
Of course you can do it by yourself - the best way to loose your shirt and buttons too
George in Tucson
2 votes
Ric Mills, Agent, Oro Valley, AZ
Mon Aug 15, 2011
Hello again, sister pine. Yes you can. I wouldn't advise it unless you are a very savvy buyer and know the area well, the laws, know good home inspectors and repair people. For very little cost to you, you can work with a licensed Realtor that will look after your best interests and look for problems and pit falls. Auctions are NOT for rookies or the faint of heart. You really have to know what you are doing or you can easily make some bad mistakes. These mistakes can be very costly and you have limited or no recourse from the seller. Auctions are definitely a "Buyer-Beware" buying situation. Hire a professional to help and protect you. They will be worth every penny you pay them.
0 votes
Brad Bergami…, Agent, Prescott, AZ
Mon Aug 15, 2011
Most auction systems allow for either. It usually doesn't cost you any more to have a professional Realtor represent you in the sale and make sure it is done right. This has been a new standard in our industry to work with auction.com and other online bid companies.
Best of luck to you,
Brad
0 votes
Minette Gold…, Mortgage Broker Or Lender, Tucson, AZ
Mon Aug 15, 2011
You can but you will need to pay all cash. You may need to own the property for a while before you put a mortgage on it if you want to. You might want to check out http://www.biggerpockets.com for more background information.
0 votes
Jeffrey Masi…, Agent, Scottsdale, AZ
Sun Aug 14, 2011
Dear Sister:

Get a list of auction homes, get cash, go to the auction and bid. Check out the preview homes ahead of tme. However, be sure of the condition of the house before you bid. Unlike a home with a purchase contract there is no post bid inspection period. Also, you will need cash after bidding.

Yes, you can do this yourself. You may want to read a book on the advantages and pitfalls of buying a home at auction.

You can pay someone to bid for you if you do not want to go to the auction yourself.

There are many different types and locations of auctions.

Let me know if you have any other questions.

Jeff Masich
HomeSmart Realty
Scottsdale
Web Reference:  http://ArizonaHomesLand.com
0 votes
Neal Brown, Agent, Glendale, AZ
Sun Aug 14, 2011
Yes you can bid However if you are attending an auction you must do your homework on the properties you plan to bid on. It is my recommendation that you retain the services of a realtor with experience with auctions that can help you with market analysis.I have worked with many clients at the Auction.com (REDC) auctions.If you need further assistance or need more detailed info on this auction. email ( neal.brown@remax.com )
Good Luck!!!
0 votes
Jeff Zimet, Agent, Tucson, AZ
Sun Aug 14, 2011
Yes..anyone can purchase a home through the auction system..You can use a Real Estate agent to help you with the purchase and go to the auction with you..Most corporate sellers will pay your agent at closing but it is usually a much lower commission than what they are used to. You can go to the auction yourself if you prefer..You will need to register with a cashiers check at the auction. The rules vary from one auction company to the next. Most auction companies have websites that explain the process. Do your homework in advance before you bid on a property. They are as-is sales and usually no contingencies on inspections, appraisals or loan approvals. Earnest money deposits are large and are kept by the seller if you don't close as agreed. Most auction buyers are experienced cash investors. The seller can reject the highest bidder at the auction and many times they do. Use extreme caution.
0 votes
Spirit Messi…, Agent, Tucson, AZ
Sun Aug 14, 2011
I agree, not in your best interest to buy at site with no buyers agent. Majority of the time, no cost to you for the agent either. The only auction I would recommend, & a person can participate in regardless if they have RE license or not, is a Trustee Sale or Sherriffs Sale. Those are cash only, payment within 24 hours. Good luck.
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Sun Aug 14, 2011
Sisterpine:

You have pretty much heard the best answers already.

Read Jay Thompson's article on the foreclosure process. I strongly believe that buying at auctions, foreclosures and buying real estate in general- does require knowledge of the market and a decent cash reserve.

Real Estate Professionals and Investors usually dominate the Auction Bidding- but certainly a non-professional can get involved. Many of these so called and self proclaimed professionals typically hire true professionals to sift through the inventory BEFORE bidding.

Keep in mind that the lenders representative is almost always at the auction to protect the lender- in most cases too.

~≈~≈~≈~≈~≈~≈~≈~
WATERWAY REALTY, REALTORS®
~≈~≈~≈~≈~≈~≈~≈~
0 votes
Dianne Hicks, Agent, Rancho Bernardo, CA
Sun Aug 14, 2011
Yes... but you really are at risk of getting into sometime you do not know about. You need to make sure you know the area you are buying and there are no guarantee's so buyer beware. You could end up with a damaged home on many levels. Also you want to check title seconds before it goes to auction to make sure there are no leans because MAKE NO MISTAKE ABOUT IT....you purchase the leans as well.

You should go and just observe the process for at least a few times. Personally... I would find a Realtor that knows what they are doing and agree on a fixed priced and have them help you. $5000 could save you ALOT of money in the long run... just sayin. Also that will help you understand so if you decided to do it a second time... you would have more experience. I have seen more people get burned when they do not know what they are doing.... So you know the old saying.... Buyer Beware!!!

Kindest Regards,
Dianne Hicks
Web Reference:  http://www.di4homes.com
0 votes
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