Buying From An Auction - question from a newbie
As part of my learning process, I've watched my first live local county Real Estate Foreclosure sales auction.
I saw a 15year old house valued (via my local knowledge) at about $200k, sell for $135k.
If I were this buyer what are my risks from now on?
Is there the potential for HOA fees that are due, unpaid Property tax? Eviction potential?
I'm assuming the house could be in bad shape and need $ to bring up to saleable state.
What else am I missing?
I have been looking back at old auctions and observed what appears to be good deals... however, I know that's likely naïve of me!!!
Most Popular Reply
Actually @Bobby Gillespie, that's a fairly standard discount to the market value for foreclosure auction, at least in my market. There could be some back taxes and HOA fees still owing, but at that win price it's most likely the 1st foreclosed so will be no other fees (except utils). And if it's in a gated community where the exterior is kept up by the HOA, then you'd be looking at anywhere b/w $25K-$50K on rehab of the interior for a 15 yr old, assuming roughly 1500 SF for that price range. One could look through the windows to determine (but is considered trespassing, lol). That depends of course how badly the previous owner neglected it.
But as others stated above, do not go into this without doing plenty of homework and pulling a title search beforehand.