- May 6, 2011 at 1:30 pm #208101
look out for? What can I expect if I buy a house at auction? What would I need to know? any details are greatly appreciated.
- May 7, 2011 at 12:03 am #265502
Having observed real estate auctions over 20 years, here goes:
1. There are professionals who show up every day. Several of them. They bid low, and often adjust their bids in $1 increments. These are the houses to buy.
2. Never pay more than 65% of the market value of comparably listed houses in the neighborhood.
3. Be prepared to pay cash (i.e., cashier’s check) for the house you want to buy.
4. Before you buy the house, make sure you have a reliable general contractor inspect the house, and provide you with a list of obvious needed repairs. Anticipate latent repairs will cost at least $7,500. Make sure it’s in your budget.
- June 15, 2011 at 10:38 pm #289729
unless you have the chance to do a professional inspection ahead of time, you are taking a huge risk buying a house at auction – there could be major things that you will have to fix before you allowed to move in or you might not be able to get a mortgage and then you will lose your deposit
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