How do I investigate a property for auction before bidding on it?

Asked by mnmarlynn501, Los Angeles, CA Thu Jan 24, 2013

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Johnny James, Agent, Carson, CA
Thu Nov 14, 2013
Do not get too fired up about the low starting bid prices you may see on some sites. Keep your eyes open for the inspection period to view the property you are interested in.
0 votes
Tamara Stoebe, Agent, Lancaster, CA
Thu Jan 24, 2013
Hello mnmarlynn501,

If a local auction company is doing the auction - such as Marshall, then an open house will be held and you'll be able to visually inspect typically the week before.

You may or may not need cash, some auctions are done where financing is available, it will depend on the company holding the auction.

If you are doing a purchase on the courthouse steps, then cash is required. I'm happy to assist in anyway that I can with your Rosamond purchase.

Thank you,

Tamara Stoebe, REALTOR/Notary
DRE License #01827461
Prudential Troth REALTORS
1801 W. Ave. K
Lancaster, CA 93534
(661) 466-6849
Fax (661) 422-3006
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Jan 24, 2013
Lance is on the money, public auctions are not for beginners and they are not the glamorous productions seen on tv shows. Those tv shows don't show all the behind the scene searches done and the ones the bank puts a high starting bid on to cover what they are owed. The bank often puts on a starting bid which is often more than the house is worth, do you plan to pay more than it's worth? Don't believe the get rich quick books where someone bought a house for $1, I have $150 in my pocket and I would own 150 if that were true - I own 2.

Wait for the bank to buy it, decide how much they will lose and make an offer when they list it for sale. OR go out and buy a regular sale from Mr Smith or Mr Jones and get a home with less issues to deal with than one previously foreclosed. All bank owned homes are not super dooper deals, they come with issues sometimes because they were owned by people not willing or able to keep the house in good repair for a year or longer.
0 votes
Lance King, Agent, San Francisco, CA
Thu Jan 24, 2013
Let me just say this: I mean no disrespect but the fact that you are asking this question leads me to say buying a property at auction is probably a bad idea for you. Here are some things you should know:

1. You will need all cash
2. You will not be able to do inspections
3. There could be clouds on title - you could ask a title co to run a report for you and have an attorney review it to get a better idea about that
4. You will be going up against veteran investors who do this all the time.

I would look at REOs - foreclosed properties listed on the MLS. You can do inspections and be sure of clear title
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