Hascanyone here bought a house at Auction?

Question

Hi does anyone have experience with buying a house at auction.

Auction.com but in person....live auction at city Court house?

Account Closed · Answer

I've been to a lot of in-person auctions over the years for a reason other than to bid. Personally, I decided a long time ago that the auction is the worst place for me to buy a property. Others seem just fine with buying at auction.

Here are a few reasons I don't:

1. I don't know the condition of the property. Most houses in foreclosure have a lot of deferred maintenance that you actually have to go inside to see.

2. It's usually occupied with the previous owner and I don't like the process of evicting them especially if they are elderly, infirm or not capable of taking care of themselves. I understand they haven't been making the payment but I don't like dealing with that end of things.

3. People get excited at auctions and bid way higher than the value of the property, making finding a decent deal very hard to do.

4. You have to use cash, not leverage, and I prefer using leverage.

Brian Langstrom · Answer

I have subscribed to the alerts and gone numerous times. What I see is the Mortgage holder will bid it up to cover their lien. Then good luck to someone wanting it.

They tend to be dumps. I have gone to inspect with the buyer after the auction. Oh my god, how do people live like that. Not worth the money if you need a snow shovel to empty it out.

In Naples, a decent one will come across about once a year. The bidding is furious and some rich, bored guy with nothing to do will overpay and take his high fives and leave.

Linda Mac · Answer

Also, online auctions charge a 'buyers premium' of 5% (+/-) on the end sales price!  Ouch!

Hascanyone here bought a house at Auction?

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