How to purchase a property that's listed for auction?

[Robert Walden]

In this seller's market, I see a great number of distressed properties going for auction rather than a straight sale. I suspect people will likely bid them up higher than they're worth, especially considering repairs needed and subsequent ARV. And, my guess is that real estate agents are encouraging owners to extract as much profit as they can from their houses in poor condition, which boosts their auction fees as well.

Is it possible to purchase a property prior to the auction, if its already been listed with an auctioneer? And if so, would I approach the auctioneer or the owner with an offer? I don't want to completely cut the auctioneer out of the deal, or incur any unnecessary fees for the owner for breach of contract with the auctioneer. I planned to make a non-traditional offer of a partnership agreement between the owner, the auctioneer and myself, which has the potential to make even more money for everyone than the auction. 

Is this possible? If so, please explain how best I should proceed.

Thanks!
    :-)

[Marty Boardman]

Quote from @Robert Walden:

Thanks for your replies, Bob and Chad!

To answer Chad's question, its a private auction held by the estate (or family) of a deceased elderly woman. My intent was to try and contact the executor (or family) of the deceased about a possible rehab partnership. But, I don't know how  auction contracts are written. Would the auctioneer feel cheated if I tried to stop the auction? And, how much could/should I offer to buy them out of their anticipated profit from the sale of this house at auction? (I don't want to create any ill will among auctioneers in this market, especially since this is he largest auction firm in the area. I may wan't or need to deal with them again in the future.)

- Robert

From what you've described the house is not in foreclosure (pre-foreclosure, sheriff's sale or REO auction). There's no distressed seller. The estate has hired an auction company to dispose of the asset to a high bidder. It doesn't sound like they're very motivated to sell and I'd be surprised they would want to make a deal with you (or any other investor). They've likely considered that option already and figured they could get a lot more money for the property by selling through this private auction company.

But it's worth a shot. Good luck Robert!