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auctions

Discussion in 'General Discussions' started by thedude, Jan 22, 2016.

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  1. thedude

    thedude Member

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    I'm looking at buying a home soon and curious to the ridiculously low prices on auction.com

    I believe these are blind auctions and your not allowed in the home until you buy it. How risky is this? Im looking at buying an extremely old/cheap house and not risking big money.

    Anybody with experience with this site? As of now I'm more inclined to go for a bank foreclosure but I don't know much about real estate.
     

  2. Boomer33

    Boomer33 Member

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    From what I know about auctions they are very risky but can also be very rewarding.

    When I was in the RE field in Virginia auctioned properties were bought sight unseen (at least the interior, if you had the address you could do a drive by), while foreclosures could most of the time be seen prior to purchase but are sold as is.

    When you buy a house sight unseen you have very little idea how bad the inside could be. I had a RE friend buy a property via auction and the previous tenant had poured concrete down all the plumbing so they needed all new plumbing a huge unforeseen expense. You can normally do a drive by the property and get a feel for how it has been maintained but its only an idea. You never know what you will get inside. Also from what I remember a lot of those auction sites were outdated and most of the properties on their were already gone, however that was years ago when I worked in this field.

    Now having used to work for a Foreclosure RE firm writing the monthly marketing reports on each of our foreclosure properties to send to the banks I can tell you that the banks are trying to get as much as possible for these properties without having them sit for long periods of time and the agents who are working for the banks are trying to get the property at the correct price that the property is worth or maybe a bit less depending on other factors.

    Its really all about the amount of risk you are willing to take on.
     

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