Buying at auctions...

2 Replies

I've been looking at picking up houses through the auction sites (Hubzu, Auction.com, etc) and I know that as the buyer I will be responsible for closing costs. But if I'm using private money to fund it as a "cash deal" then I wouldn't pay as much as I would if I were going to closing with traditional mortgage funds, right? Anyone have much experience with the auction sites that could shed some light on this? Should I figure 1%, or should I be higher. If the title is clear, and there is no back taxes then wouldn't I just be paying the county and city fees? Any help would be appreciated!

Is this private money from people you know? If that's the case then yes, closing will be cheaper. You do have to pay transfer fees, taxes, insurance, recording fees, title insurance, etc... but youd avoid lender fees. As a percentage, it's hard to tell but you're still looking at several thousand dollars, depending on the property tax rate