Finding deals on auction sites ?

Question

I have recently found auction.com for foreclosure listings. Does anyone used auction.com and if so have you had success? It states on the website it’s the nations number one leading real estate transaction company which concerns me with competition and having the prices of these properties to just be bided up higher than any smart investor would pay.

Lynnette E. · Answer

I have bought 2 houses on auction.com.

In some places people will bid the price up to retail.  It is stupid because you get what you get and these houses may be retail quality, but likely are foreclosure quality, needing lots of repairs.

I did not have entrance to either house prior to purchase.

First house I knew has condition issues inside, and major roof issues.  I did not know that every pipe burst or split or that it was not winterized and that the main water line to the house needed full replacement.  I did not know that the heater ductwork was not connected or that a main beam like 10 x 10 that held up the entire house since 1900, including a second story was old termite (none active) destroyed for 4 feet and no longer held up anything.  And a lot of other things, but not as major.  Its a money pit, but I should be ok.  Very ok in the end.  Got it for $57k and a house that is similar one 2 blocks away is in escrow listed at $250k.  Pretty Victorian house.  LOTS of work, but I like old houses.

Other is smaller, newer house.  I knew it needed lots of interior work, kitchen, bath cabinet, floors, broken windows, plus roof and trees falling in the yard--major huge trees.  I could see that from the windows.  What does not show up outside is that it needs foundation work too.  That was a surprise.  Will be putting in 12 to 24 piers on concrete depending on who does to work.  Apparently the span in the floor does not support the weight of the floor plus stuff so will have to run 2 beams to lift the floor back up...or maybe just rent it to staggering drunks, which was suggested by a friend.  Got it for $67k, value fixed up is $110k, maybe 120.  But is a real nice area and should be able to rent it well long term.  Should be ok there to, but again lots of work.

Recommendation is to stop bidding low, and wait them out.  They eventually lower the price.  Don't go high because you do not know what you have, and they are not telling.  In looking at many houses on their site prior to bidding I found houses with split foundations, condemned notices posted on the house by the county, burned houses, lots of really bad houses, and they are silent about the problems they have to know about!  Another house we were interested in we drove by weekly and saw the cabinets, air conditioner, ceiling tiles, etc. being removed a little each week.  Windows broken and screens ripped off and thrown in the yard.  I called the management company twice, they did not care, doors still left open.