Buying SFH through online or in person Foreclosure auctions

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Buying SFH through online or in person Foreclosure auctions

Veronica Giggers
Member since 2021 · 82 posts · 13 votes

Hello BP family. I am thinking about purchasing a SFH that is a foreclosure and listed on an online auction site. Does anyone have experience with this type of investing? Any suggestions on how to go about getting a good deal or if there are really good deals thru a foreclosure or bank owned property.

Thank you.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Veronica Giggers:

Hello BP family. I am thinking about purchasing a SFH that is a foreclosure and listed on an online auction site. Does anyone have experience with this type of investing? Any suggestions on how to go about getting a good deal or if there are really good deals thru a foreclosure or bank owned property.

Thank you.


There are some good opportunities, but many of them are not as good as they seem. The homes are often abused/neglected. The utilities are typically shut off so you can't test plumbing, water heater, furnace, appliances, sprinklers, etc. There can be a lot of unknowns that can come back to bite you if you don't know what you are doing.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Veronica Giggers:

    Hello BP family. I am thinking about purchasing a SFH that is a foreclosure and listed on an online auction site. Does anyone have experience with this type of investing? Any suggestions on how to go about getting a good deal or if there are really good deals thru a foreclosure or bank owned property.

    Thank you.


    There are some good opportunities, but many of them are not as good as they seem. The homes are often abused/neglected. The utilities are typically shut off so you can't test plumbing, water heater, furnace, appliances, sprinklers, etc. There can be a lot of unknowns that can come back to bite you if you don't know what you are doing.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    1Reply
  • Saela Herrera
    Real Estate Agent · New western · Member since 2022 · 6 posts · 1 vote
    3y

    I personally havent dealt with auctions. I did talk to an investor that went the same route, but they couldn't purchase a property due to being out bided all the time. I would love to get into contact with you and hopefully assist you in finding what you're looking for!!! 

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  • Brennen Thompson
    Investor · Tampa, FL · Member since 2020 · 52 posts · 42 votes
    3y

    Hey! 

    Similar to what @Nathan Gesner said, a lot of these properties aren't going to be in the best shape. If this is your first investment, I would be cautious of this route. We bought a home under similar circumstances when we first started out and ended up about $25K over budget and about 4 months over on the rehab. 

    We've been seeing some solid deals on the MLS recently that have been on the market for 60+ days. These sellers are almost equally as motivated, probably kept the property in better condition, and are safer in terms of due-diligence/inspections/etc.

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  • Veronica Giggers
    OP
    Member since 2021 · 82 posts · 13 votes
    3y

    Thanks all, I figured there is unknowns in purchasing properties via auctions. Some of them do look pretty good though. I'll let you know if we do decide to try out the online auction gig and how things turn out. Happy Investing.

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