Attended my first auction

General Real Estate Investing
1

I attended my first auction Saturday. There were 14 new condos selling absolute. Unfortunately, I didn’t have the funds to bid, but went anyway for the education. There were 6 units that were 1100 sq ft that I’ve seen listed for $100,000 that sold for $39,000 ea. 8 units were 1400 sq ft and one sold for $70,000 the rest in the $50,000-$65,000 range. I’ve seen those models for $130,000-$135,000 on the mls. Real good deals, I should of been bidding.

Anyway, it seems the deals were so good the builder took off with the contracts before the auction ended. Although I didn’t bid I was curious to where this would leave the successful bidders?

Has anyone ever heard of this happening or have any input? Since winning bidders never signed the PA do they have any rights to these properties?

2

What you have to remember with these condo auctons is those auction prices ARE THE NEW COMPS!!

That entire developement just took a beating. Could be good deals if you plan on renting them, but condos usually don’t make good rental properties because of condo association fees. In addition to the monthly fee’s, you have to deal with future repairs. When that condo needs a roof each owner is billed an equal share for that repair, who knows what they get for pricing? In single family or even multi’s at least YOUR the guy deciding who, what, when, and for how much? With a condo you just get a bill.