I am interested in a property which is in MLS and now listed for auction in HomeSearch. In MLS it is listed for higher price and in HomeSearch the starting bid is half the list price. Knowing the market in that area, my guess is the property is worth for 70% of the list price which I need to confirm by seeing the property. I am seeking experts advice for the following options
Option 1: Should I send an offer through MLS for 65% of the list price and negotiate and settle for 70% of the price?
Option 2: Should I bid through HomeSearch ? The concern I am having to bid through HomeSearch is what would happen to the earnest money or $2500 credit card amount hold that they put during the bid if the title search shows any issues. I read in another post that the contract will be sent only after the bid is own and the contract is non-negotiable. With Option 1(MLS), I can read the contract before sending the earnest money. Also, I can do a title search as soon as the offer gets accepted.
Thanks in Advance
@Uma S. Why not do both? I wrote a post about my experience, tried to buy a house through the MLS but they wouldn't take it off the auction site. Ended up buying it at auction on the site for much less than my offer off the MLS. Want to know what the contract says? Send me a message with the particular section you are worried about and I will send over what it said in mine.
With Homesearch, and most other auction co.s, the property is Not available to buy through the MLS, traditionally. The MLS listing is simply advertising to feed buyers to the auction.
Thanks for the answers. I took a look at the property and it has structural issues and many code violations. I have decided not to bid on the property and continue my search.
William Allen, thanks for being kind enough to share a section of contract with me. I will PM you in future if need be.
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