Ok check out a couple of the auctions in NV, AL and IL. I've got a number of houses I'm bidding on. Super low ball bids (more than likely to get outbid), but if they happen to win the auction as the high bidder for some reason, . . . well lets just wait and see.
As of today (5/16/11 @ 7:30pm Pacific) I'm still the leading bidder on a property in Illinois: http://www.williamsauction.com/Property/ViewProperty.aspx?PropertyId=323585
I have a high bid of $2501. If it's the highest bid for this auction, it's likely to get rejected by the owner. I'll try my strategy and see if, in the even that it is the highest bid, they accept it.
If you win this auction at $2k and they will accept this bid, what happens after this, how you can pay, how much closing costs, how long will it take? etc.
I got a home in my same neighborhood for $85,000 which appraises at $205,000 about 2 months ago.
I'm completely new to investing in real estate but I'm gearing up for another one of these auctions on the 19th.
Piss on Williams and Williams! I bought a property from them about 5 years ago, I was the winning bidder on the house at 12k, they said this is absolute. The exact words were, "this is an auction where buyers buy, and sellers sell". I bought the house sight unseen. I went to the home, and it was AWESOME!! They came back and said my bid was rejected! They needed 25k! I went ahead and paid it because it was still a great deal, but I was pretty upset. I still own the property free and clear, and it is a great cashflow machine, but It would have been better at the original price. I already made my coin back, so what the heck, I cant complain. Just be careful with them, they are pretty slick! :mrgreen:
Rob Gillespie, Rob The House Guy, LLC | [email protected] | 330‑635‑9717
I read Terms of Sales and found this:
"Each high bidder must make a 5% non-refundable deposit per property ($2,500 MINIMUM - whichever is greater) at the conclusion of the auction."
So if bid would reject from seller, buyer lost $2,500? That evil.
Uwe, you only lose your deposit if you win the auction and you can't close. If they reject your bid your deposit is returned.
Here's the scoop on W&W. They are a totally legit organization. They charge $1500 for their auction services. At the end of the auction they ask that you put up $2500 right away (before closing). They then apply $1000 of that toward the purchase/closing and keep the remaining $1500 as a buyers premium. The remaining balance of the auction + closing is due on average in about 30 days. The seller has the option to accept the high bid or deny it. If it's declined the deposit is returned and everyone goes about their merry way (if the winner of the auction doesn't accept their counter offer). The problem most people have with W&W is that they even allow the seller the choice to either accept the winning bid or deny.
Unfortunately none of my bids this go around were winners. If anyone has any questions/concerns about using W&W I'd be happy to advise; just to build a network of fellow investors.
After winning the auction, I was invited to bid against myself. At least that's what it felt like...
BofA owned vacant lot next to my house went up for auction. Was on the market 3 years, with the price steadily dropping. No takers. Not even a sniff. It went up for Williams auction, I won with the minimum bid. Signed the paperwork and paid the full price--including auction fees. BofA rejected the bid, countering with a price 12X my "winning" bid. I was invited submit a counter offer, which felt like I was invited to bid against myself.
There is no honor here. If they have a minimum, that's where they should start; else, wasting our time and money. Also reminded me of playing monopoly as kid against my big brother. He wouldn't let me win, either...
I bought 2 properties at a W&W auction, both of them off site. The 2nd one was countered at more than twice the highest bid. I told them the house was in such bad shape (and it was) that I would not go higher than my highest bid. I thought it was gone but 2 weeks later they came back and accepted my original bid. Both properties were held by Fannie Mae. I have had a positive experience working with W&W and am looking at a few more properties coming up in the near future.
I have won 4 W&W auctions and 2 were accepted. $3500 for one and $6000 for the other. But then you have to add the $1500 minimum auction fee.
interesting and good to know
I use Williams and Williams regularly and found that its very hit or miss but mainly (as someone else stated) a negotiation.
I have won the high bid (for 27500 on a condo valued at 60k) and they called and told me they would ONLY take 32k. I countered with 31500 and they accepted.
Another property I won for 17k (on a house valued at 35k) and they accepted it immediately.
Best idea is to NOT get emotionally involved in any property and if the counter offer is something outrageous then just laugh it off, so no or slightly counter higher then your high bid, and move on. It is definitely a legit site that I continue to do business at.
Are these houses on W&W free from any defects or clouds on the title? Any loans or taxes that need to be settled? What kind of title can we expect?
I am currently bidding on a house on-line and am skeptical of W&W but then again I also was of another online auction company that I currently do favor.
This house I am bidding on is owned by US Bank and noticed that someone is bidding against me with the username of 'taxcutter' and notice that this "person" is also bidding on properties throughout the country. Is this individual bidding up the price for the bank, W&W, or a wholesaler?
I'd hate to have my low-ball offer accepted and then find out that there is much involved with getting a marketable title.
@Stanley Crawford maybe my bid isn't as low-ball as I thought since you got yours for $3500 and $6000.
Any help with what to expect would greatly be appreciated.
The auction site should tell you, somewhere, if your getting a QCD, and what else is covered/not covered.
Yes read the terms for that auction. As long as it is not an occupied property you should get an insurable title. PM me if I can help.
The price on this house I was pursuing has now exceeded what I wanted to pay.
@Stanley Crawford if I see another house on W&W that I may want to purchase, I'll certainly contact you. Thank you for the offer of help.
I have dealt with W&W several times, 2 were accepted, 2 rejected, just nature of the game. Auction also clearly states the high bidder fees that you will pay so nobody should be complaining about those, dont bid if you dont want to pay them.
I purchased 3 W&W properties in early 2012 and all of my bids were accepted. It likely just depends on how much the highest bid was for and what the minimum the seller is willing to take.
If you get another one rejected I'd suggest trying to immediately negotiate through the W&W rep to see if they'll accept a slightly higher offer from you. W&W wants to sell the house so they get a commission, the seller obviously wants to liquidate and you're a potential buyer. Might as well try to work a deal.
I put a winning bid at an auction. They approved the offer, and took my deposit of 36,000. After getting loan approvals, appraisal, inspections, elevation certificate and food insurance I am out 39,000. When lender ask for proof of right to sell they call two weeks after saying they can not sell it and are under breach of contract. At these auctions they do not let you see the contract before and after you bid they have you sign your rights away. Basically you can never back out, but they can back out at any time. You can not even take them to court to sue. Very bad these guys are allowed to do this. I also learned that before they told me about the active suit on the house they put it back on the market at 920,000 -- I won the bid at 700,000. So we know the real reason they backed out. They basically are lying to me they put it back on the market and not selling to me.
I just closed a deal with them at 25% of ARV. It took way longer than expected, but no complaints. Looking forward to making more bids soon.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!