Purchasing occupied properties from auction

[Brent Wooster]

I’m doing my research in preparation for attending my first live auction of foreclosed properties. I’ve noticed that a few of the properties are occupied, I’m wondering if anyone has had experience especially here in Maine, purchasing occupied properties from auction. How difficult is it to get the occupants out of the property?

[Winston Covington]

Hi Brent, here’s some things to check into before buying at an auction.

1. Is there a Buyer’s premium that will be added to the purchase price by the Auction House. Many times it can be 5% or more.

2. The terms and conditions of how you will be required to pay for the property.

3. If the property is occupied, what are the costs and time requirements for an eviction  ?

4. If the occupants are cooperative, you might be able to get them out faster with a Cash For Keys agreement 

5. Make sure to have a healthy budget for repairs 

6. Be aware the the Auction house is very good at pushing the price up. I have seen lots of people pay too much for a property “ thinking that they were getting a deal by buying at an Auction “

7. Do your research, know your comps, check the title for any new liens or judgments and be patient. Many times, the better deals are found towards the end of the Auction 

Good luck