What are your thoughts on a newbie buying their first property at auction? What advice can you give? What should we look out for or make sure we do?
Thanks.
Know the true value, decide your top bid before the auction starts and don’t exceed it by one penny.
That’s what I thought was the best plan of action, but talking to someone (who claims they have been in the business for 15 yrs.) he strongly advised against it. Stated I could get stuck with back taxes and other hidden fees/costs.
You have to do your due dilligence up front and do a title check like any other property. Also, I would advise you either know what you are looking for during the inspection (physical problems with house). If not either have a contractor with you that can do the walkthrough with you or estimate your rehab costs way over what you think they will be. If you over estimate and come under budget its more profit for you. If you under estimate you can’t go back and fix the buy price to save your profit. If your over estimation causes your buy price to be under the final sale price and you lose your bid its not a big deal, it probably saved you from some pain. Also, its a nice dry run and you learned about the process.
I contacted the auctioneer and spoke with a rep who stated all fees/costs are taken care of. I do have their fee, which I knew of.
I don’t take anyone’s word, I always have to research for myself. So I checked on the site and here is the wording in regards to title…
“Buyers receive insurable title to each property, as evidenced by the Title Insurance offered by the Closer indicated in the Contract. Current year’s property taxes are pro-rated through day of closing as customary. Any manufactured housing not already considered attached to the real estate will be conveyed only with hold harmless agreement or quit claim Bill of Sale unless otherwise noted.”
Am I missing anything? Need further research?
Anyone?