How to get comfortable for Xome auction

[Ginger G.]

Hi Folks,

How do investors get comfortable bidding on auction properties when there are no inspection (when it lists owner occupied)?

I'm looking at a condo as a discount. There's room to rehab but no way to tell how bad the unit is inside.

[Jendayi Brandon]

Hi All, 

I agree with @William Collins. I bid on a property - I had a limit. The property came back on the auction and I got it at my max bid amount I wanted to pay. 

Now, bidding on homes you can't inspect you have to expect the worst and pray for the best. In my case, although the home was occupied, I found the people were living in deplorable conditions. There was a lot of water damage and junk that had to be removed including some old cars in the garage. Cars form a special situation as you cannot just claim them as part of the sale. 

I had to go to court to get the tenant who I learned was "squatting" in the house. That took 4 weeks off my timeline. 

To make a long story short, I think I encountered everything that could go wrong when buying from the auction - my budget was busted, my timeline ran over, and I dealt with issues I hadn't anticipated. But I learned so much and due to the bull market, I still made a little money on the deal. 

If you want to move forward: 

1. make sure you have a contingency plan

2. you have thick skin

3. you have mentor support to lean on.

Good luck!

jen B