Anyone buying off auctions?

Question

I'm curious to if anyone is buying off auctions. Whether be from the courthouse, or website platform. As my capital has built, this is something I've become more curious about. Can anyone speak on their experience with this, as well as the process given current events?

Thank you

Sean H. · Answer

Waste of time. Every time i see a worthy house, it goes over mls "market" values. I bought land once, only because it was in my neighborhood and i really wanted it. It took six months with upset bids, and i ended up paying market value.

Robert Lively · Answer

I'm curious as well. We've bought from some online auctions which is a much different process than the courthouse foreclosure auctions. I know typically with courthouse auctions it is a very quick turnaround (maybe 24 hours) from when your offer gets accepted to when the payment is due and you close so you will have to be comfortable with the added risk of not being able to do much due diligence, or will have to scramble to quickly verify you are buying a clean title and to produce the cash for purchase if you don't have it already liquid. There can be some great deals at auction but I would just say be careful if you go this route because what may seem like a really good deal can quickly become a bad one if there are any major liens against the property or any major issues when buying sight unseen.

Nate Sanow · Answer

I've passed on this because they usually trick people into thinking it's a deal by going unusually low in their asking as a cheap marketing ploy.  And I was told that the company / website has a way of bidding against other online bidders only for the purpose of driving up bids.  IMO there are better ways to get deals.

Ben Kirchner · Answer

@Robert Lively What platform are you using for the online auctions?  How do you end up doing your due dilligence as far as estimating rehab, checking tax liens, etc...?

@Sean H. How long did you stay involved in chasing properties over auctions?   You're saying the outbidding goes on for around 6 months, to ultimately go for market value or higher?

Ironically enough, I just listened to Bigger Pockets podcast #406, and the guest, Shelby Osborne, was having success with auctions in NC.

Anyone buying off auctions?

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