Buying Costs for Auction homes
Should you estimate the same amount for buying costs when buying at an auction as you would when buying through the more traditional method? I am using hard money.
Thanks for any help, and if you need more info, please let me know, and I will clarify.
To better answer your question I'd need to know what kind of auction you're referring to (a foreclosure sale or bank-owned auction).
At a foreclosure sale there are no buying costs. If you are the winning bidder you pay that amount and that's it. There could be outstanding taxes due, and/or utility bills, but that's pretty much all you need to factor in.
Bank-owned auctions are much different and there are a variety of costs the seller may ad to the transaction (i.e bidding fee, title/escrow fees).
For foreclosure auctions you'll need $5,000 on the day of sale and balance by noon the following day. Here's a link to search for foreclosures in Alabama:
Thank you for your help! That’s exactly what I needed to know. It’s a foreclosure sale.
Doing your due diligence is very important because of liens. Water & HOA liens will not drop off IRS liens will take 180 days I believe. Mechanic liens don't survive a foreclosure but may take extra title work at the end to sell with warranty deed. I have paid a few water liens in excess of 5k (I did know that before I bought). And then if property isn't vacant all the legal & holding cost to get them evicted or cash for keys.
good luck & stay firm on your top number there is always next week.
Quote from @Joe Jernigan:
Thank you for your help! That’s exactly what I needed to know. It’s a foreclosure sale.
You're welcome, good luck!