Tips from buying at an Auction?

Question

Has anyone ever bought from a courthouse auction or something on auction.com? Especially in the Fort Walton Beach area? I am trying to learn about how the process works and if it is worth it to invest through those means? Any tips and tricks are helpful! Thank you :)

Account Closed · Answer

@Matt 'Roar' Gardner definetly will! Thank you!

Thomas Jackson · Answer

@Charles Wisniewski time is definitely the only thing that is different. You can find some killer deals at the auctions and I’ve made some very good buys, so I have no complaints.

Thomas Jackson · Answer

@Charles Wisniewski I’ve purchased numerous homes through the county courthouse auctions. Every county auction is different and has different rules on how the house is paid for and in what time frame. For example in one of the county’s I buy in, the auction is only held once a month and you need either 5k or 10k cashier checks to bid/purchase. If you win the house, they take your 5k or 10k check and use it as your deposit on the house. Then you sit and wait, it can take upwards of 8 weeks to get all of the paperwork signed and back to you. At that point you will need to pay for the house in full (less you deposit check) by either cash or bank loan. Usually you want to use all cash, because most loans require a inspection and you typically don’t have access to the house yet so that can be a huge problem. (But I have purchased with a loan got the bank inside for an inspection...don’t ask me how, lol) Once the house is paid for it can take another few weeks to get the actually deed and then at that time, you will have full access to the house. Don’t get me wrong I have purchased houses at auctions and completely flipped them and had them ready to be sold even before the deed was in my name. It’s a slightly risky thing to do, but time is money in this game.

Matt "Roar" Gardner · Answer

@Arianne and Chris Lemire have. You should pick their brains in next month's Meetup.  Realize that cash is required for the auction purchases. :) Good luck!

Account Closed · Answer

@Thomas Jackson great advice! did you find the process more worth while than buying from a wholesaler for example? Or were the returns relatively the same aside from time?

Tips from buying at an Auction?

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