Auction Property Tips

4 Replies

There are two different ways a house can reach an auction: either the home has gone into the foreclosure process, or the owner did not pay property taxes. The starting bid on the home can be the remaining balance on the mortgage, or lower.

Once a home reaches the courthouse steps, buyers must be ready to pull the trigger fast. Buying a house at the auction can be a high risk, but the reward can be extremely high as well. You will have to do a lot of research about the current market and have a solid understanding of just how much you’re willing to spend.

Keep in mind that when buying a property at an auction, you will likely be required to buy the home with cash. Each auction company and county government requires a certain method of payment. Familiarize yourself with the process of your local auction ahead of time.

One of the biggest tips we can provide is to make sure you have someone with you at all times who understands the local auction process – especially if you are a novice buyer. This can help you to protect yourself from making a bad decision. Whether the person is your agent or your attorney, have someone there to represent you in the transaction. Having an expert’s help will allow you to reap the benefits and avoid the risks. 

Nothing against your post, but you don't sound like a wholesaler... more like a broker or attorney. Perhaps you can educate us regarding '...have someone there to represent you in the transaction' if that person needs to be licensed in any way in a SC Master in Equity sale? In NC, a licensed person representing a buyer in a trustee sale opens him/herself up to some (actually a lot of) liability... which will put you outside E&O coverage too, and that's why you rarely see 'representation' in trustee sales other than an occasional attorney firm that knows the game.

@ Chris Martin 

Yeah, I've been to some tax and mortgage foreclosures auctions in eastern NC.  I see real estate agents and lawyer types (on the phone) presumably bidding on props for someone they represent.  What happens if their client backs out?  Who's on the hook?  Haven't been to Pender or Onslow, but I have gone to a couple of sales in Carteret, last one I went to was a tax frclsr in Brunswick.  Waterfront prop on Holden Beach.  I was the high and only bidder, but got upset within the 10-day period.  Thought I stole it!  It may have been you that bought it!  I bought the house we live in now on the steps, only bidder.  Ahh, the good old days.  Why can't everyone stay home on auction day!?  Maybe I need a different strategy, feel like I'm just spinning my wheels.  

I went to my first auction a couple of days ago, just to dip my feet into the water and get a feel for what auctions are all about.

There were so many suits and everyone looked real serious. It was a good experience though!

@Chris Martin Yeah, I've been to some tax and mortgage foreclosures auctions in eastern NC. I see real estate agents and lawyer types (on the phone) presumably bidding on props for someone they represent. What happens if their client backs out? Who's on the hook? Haven't been to Pender or Onslow, but I have gone to a couple of sales in Carteret, last one I went to was a tax frclsr in Brunswick. Waterfront prop on Holden Beach. I was the high and only bidder, but got upset within the 10-day period. Thought I stole it! It may have been you that bought it! I bought the house we live in now on the steps, only bidder. Ahh, the good old days. Why can't everyone stay home on auction day!? Maybe I need a different strategy, feel like I'm just spinning my wheels.