I was wondering if anyone has had recent experience with bidding on auctioned homes in the Inland Empire? Is this still a viable strategy in today's market? What does your process look like for preparing for and bidding on these properties?
I am thinking about going to a couple auctions to supplement my direct mail, maybe pick up an extra deal or two per year but would like to get someone else's take on the subject. Thanks!
I was reading recently that foreclosure auctions weren't that big anymore because banks are more willing to work with borrowers instead of foreclosing. Anyone have experience with this? Are there still decent deals to be had at the courthouse auctions?
You will have plenty of competition. Look up past sales and you'll get an idea.
Can't talk about California but Texas is still strong. Fewer deals than the past but still able to make it happen. My most recent deal is below - purchased 11/1/16.
I have had plenty of experience purchasing auction homes in the IE for my clients....and it can still be a viable market- if you have the funds and patience.
It IS true that the banks are more willing to try to work with borrowers rather than foreclosing on a property, and this is where having patience comes into play. I've sometimes tracked a home that a client is interested in for several months, showing up at the courthouse steps on the day of the auction, only to have it get postponed for another month. Sometimes the home gets removed altogether from being auctioned off before the next date comes up, and sometimes it finally gets sold.
The lower end deals are much more difficult to win, because of course, everyone is looking to purchase on the lower end. If you have access to more liquid funds, than the pool of buyers going for the more expensive homes, say $350K and up, becomes much smaller, thereby increasing your chances to actually "win" a bid.
As everything else in real estate, it's really a numbers game. The more homes you track and the more cash you have on hand, the better your odds at succeeding in the auction.
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