Due Diligence on Foreclosure Property ?

Hi,

How would a person do there due diligence on a foreclosure property thats going up for a open bid on the persons lawn ?

Thanks !

Just like any other deal you are buying, you need to do comps, you need to estimate repairs and you need to understand the terms of the auction.

Just like any other deal you are buying, you need to do comps, you need to estimate repairs and you need to understand the terms of the auction.

How do you estimate repairs if you can’t get into the persons property ? What terms normally apply to such auctions ?

Thanks for your time !

I didn’t realize you were unable to preview the property. I’ve never been involved with one of those and wouldn’t bid unless my offer was contingient on inspecting the property.

As far as terms, auctions usually require a certain percentage or the whole amount at the end of the bidding. The other thing to look for is any buyer’s premium fees that would be added to your purchase price.

I didn't realize you were unable to preview the property. I've never been involved with one of those and wouldn't bid unless my offer was contingient on inspecting the property.

Hi,

Thanks for the response. At foreclosure auctions can you usually view the property ? before placing a bid ? and if can’t would it be “normal” to place with your bid with the continigency on a home inspection before you close ?

As far as terms, auctions usually require a certain percentage or the whole amount at the end of the bidding. The other thing to look for is any buyer's premium fees that would be added to your purchase price.

Whats a "buyers premuim fee " ? I’ve never heard of that ?

Thanks !

Of all the foreclosure auctions I’ve been to I have be allowed to preview the property and I dont see why you would not be able put a continigency if you could not preview it… I’d consider that normal.

The buyer’s premium is a fee added to the winning bid — is paid by the buyer to the auctioneer as part of the total purchase price

Thanks !