Buying Sheriff sales AFTER the auction?

Question

I don't have the capital to lay out on a sheriff sale or auction.  And honestly I don't have the guts to do it sight unseen either.  But a lot of these houses seem to be very good deals.  One locally looks to be in amazing condition with a value of just over $200k that sold at auction for $104k.

I'm wondering if its realistic for me to contact the buyers (public info), and offer them say $15,000 more than they paid at auction.  It would give me the chance to actually see and inspect the property, and I'd be able to get financing.  They'd make a quick $15,000 without having to actually do anything at all to the property.

Sound reasonable or am I dreaming?

Jeff Kehl · Answer

@Eric P. Sounds like a good idea to me. I have bought quite a few at foreclosure auction and usually what I get is a rehab project for several months and then I get my money if I made a good purchase. I would always forgo a bit of a profit to make a quick amount of money and move onto the next deal. Someone like you has never approached me though so I always have to do the work to make the money.

Dan Rosenberger · Answer

Large banks generally will not talk to you.  Smaller banks might.  So give it a try.  But if they are selling direct, they are probably looking for a quick closing cash deal.   It doesn't hurt to find out.

If the buyer is an investor,  they might consider your offer.  A quick smaller profit might be more attractive to them than a larger profit that consumes time and ties up their resources for a while.