First property bought via Auction.com

Brooklyn, NY · Member since 2016 · 17 posts · 7 votes

Hi everyone! I finally did it. I won my bid for a house on Auction.com today. It's a small 2 bedroom house in the Cudell section in Cleveland. It is my first time buying a house as an investment. I'm excited and scared all at once. I live in Brooklyn, NY. I will be coming here for all support from you all in the BP world.

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

be aware that just because you won the bid does not mean you won the bid.. we get frustrated with them when they come back and say bank turned us down.. it happens about 15 to 20% of the time.

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Tracey Dixon
OP
Brooklyn, NY · Member since 2016 · 17 posts · 7 votes
9y
@Sam M., I plan to fix it up and get a tenant in. I am budgeting in a property manager to handle the investment.
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Jennifer PetrilloPro Member
Investor · Asbury, NJ · Member since 2015 · 226 posts · 205 votes
9y
My attorney insisted on doing another title search, including a "deep" title search called a chancery. The auction company will tell you that the property comes with clear title and that they have a title insurance policy, I was told that is really to protect them, not you. Your only protection is doing your own title search. Costs $$, but worth it. My attorney told me some stories of people buying at auction not realizing there were liens on the house that they then inherited. Do your due diligence and make no assumptions!
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Brenda B.
Rental Property Investor · Western Slope CO · Member since 2016 · 58 posts · 24 votes
9y
Congratulations, Tracey! We just bought our first investment property through Auction.com, too! I was nervous because I'd read about so many sketchy experiences, but we're scheduled to close next week! We "won" a foreclosed home that was listed as occupied, but it was actually vacant. I originally saw the house online, but it was "occupied" by a widower, and I was NOT going to evict anyone, let alone a widower! It is 90 miles from where we live and one day we happened to drive by it on our way to look at another home. I barely recognized it because it was on the edge of town on much more property and I realized it was vacant! We spoke to the neighbors who said the widower's children had taken him out of state last fall. They also said no one else had been out to look at the home. It seemed that we were the only ones interested! We decided to go for it. I bid the reserve amount, and to be safe, I bid $2k to make sure no one outbid me. I thought Auction.com worked like eBay! It does not. I paid $2k more than I needed to for the house. Oh well. I'm actually going to live in this house part time while we rehab it. It's only 90 miles away from our home, but we live at 8,000 ft elev with long winters, short summers, and this home actually allows me to have a garden and a long summer, so it's ok. But let that be a lesson for anyone who didn't know that about Auction.com. Like Dean, we broke in after we won the bid and before we handed over the earnest $. The good news is the home had been fully winterized, but there was no need, because the heat was blasting. The gas and electricity had been left on all winter, and the home was in perfect condition!
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Tracey Dixon
OP
Brooklyn, NY · Member since 2016 · 17 posts · 7 votes
9y
Thank you so much everyone. Now I'm just waiting for the closing specialist to contact me. I'll contact property management today to talk. Thank you for all your stories and questions. I'm grateful for this community. Regular people don't get what we do. I'm a newbie but my mind is right there.
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