Updated over 2 years ago on . Most recent reply
Real Estate Auctions
New to this and trying to research some auctions out there. Currently looking into https://broward.realforeclose....
Does anyone have any tips or advice? I know ive heard people mention they dont trust them, looking to hear some positive and not positive experiences.
TIA!
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- Real Estate Broker
- Cody, WY
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It's important to understand how the auction works, as Eliott stated. You have to pay cash within 24 hours for any winning bid. You typically won't have the opportunity to look at the home, except maybe to drive by and see if it's still standing. Even after you purchase the property, there's a certain amount of time before you can take possession. The owner - or occupant - could trash the house before you take possession. I know of a foreclosure locally where the previous owner stripped cabinets, bathroom fixtures, doors, copper pipe, electrical wiring, furnace, A/C, water heater, carpet, light fixtures, ceiling fans, and anything else he could. The buyer got it cheap, but then had to put $100,000+ into it before it was livable.
You should also learn how to investigate the property for liens or other issues. I know someone that bought a house for $50,000 in Florida, then she learned that it had a lien on it for over $200,000. It wasn't worth $250,000 so she just walked away and lost her $50,000 invested.
You can make some serious money, but you can lose serious money. In more populated areas like Florida there are a lot of pros and it will be competitive. I recommend you visit a few and watch them to get an idea of how it works and whether you want to jump in.
- Nathan Gesner
