Foreclosure Auction - Pierce County, WA

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Foreclosure Auction - Pierce County, WA

Matt J.
Investor · Tacoma, WA · Member since 2016 · 120 posts · 112 votes

Hello BP Community - This question pertains to purchasing properties at auction and if you use an auction service (investment group that allows access to their website, data and checks title, etc.) or if you do it yourself through some other site that composites all auction data, such as PropertyRadar.

I've bid on properties at auction in the past using an auction service and am considering doing it again. Before that though I'd like the perspective of others who buy at the auction.

To set the stage I've been a RE broker for 14 years, own a couple of rentals, flipped a few homes and know my market well. Determining potential value of each home going to auction will not be a challange. I'd be using the auction service purely for access to the data and having them check title. As a broker I can call my local title company and they'll check title for me as well.

The auction services in the Seattle / Tacoma area charge between 2%-3% of the auction purchase price as their commission for access to thier system and bidding on my behalf. I don't want to be "penny wise, pound foolish" but at the same time want to make sure the value is there.

Any insight is appreciated - Thank you.

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Cailyn AunePro Member
Tacoma, WA · Member since 2015 · 176 posts · 88 votes
10y

@Matt J.- Caliber was recommended to me by various people, one of them being a long-term friend who I highly trust. I went to both the Caliber and the Vestus new investor meetings (they both hold them on Tuesdays), then went to both of their Thursday evening meetings where they go over the properties going to auction the next day. I did a lot of comparison to try and vet them out. Caliber is dealing with a smaller number of investors... at the Vestus meeting, I was one of 75 in the crowded room. Caliber's numbers on their ARV's and rehab costs seemed pretty realistic, as Vestus' seemed more inflated. Vestus is one of the big players down there, purchasing more than others... but I also watched how much they paid for some of those homes, and from my numbers, they definitely weren't all deals. The Caliber group will only review properties on Thursday nights that they feel great about recommending the numbers for a flip. From my experience, Vestus went through all the properties going to auction and made them all sound like great deals. Caliber has a breakdown with a print-out of their detailed calculator for each property they feel like you can make money with. Again... you tell me who sounds like they are working for their client's best interest. :o) I haven't yet made a purchase, we are moving funds around to do so... IF we can find a deal that works.
I have been tracking the min bid prices vs the prices the homes sell for, and occasionally, it seems like there might be one worth having. But not a ton. Hedge funds are still present at the auctions, buying up any homes built in the last 10-15 years or so... I couldn't believe how much one of those homes got big up to. Crazy. I don't know how they make money doing that... but I guess they have a plan. :o) But the Hedge funds typically aren't touching the old distressed ones that need work... at least with what I've seen so far. 

Anyway... for what it's worth... hope that was some helpful feedback. 

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  • Bryan R.
    Tacoma, WA · Member since 2010 · 203 posts · 93 votes
    10y

    Foreclosure auctions are hyper competitive right now. I find it hard to buy down there. There are better deals on the MLS even.

    As for data and title work. That really depends on how many properties you're looking at, what your title relationship is like, and how comfortable you are looking at records yourself. 

    If you're high volume, looking at a ton of properties every week, or not so strong on the title end you're probably best off using an auction service.

    If you're only doing a smaller volume and comfortable with title work you may be able to DIY.

    Most people down at the auction are using one of the services. Because either 1. They don't know how to do it themselves or 2. They are high volume and don't have the time and resources to pull title on 100+ properties a week.

    2Reply
  • Matt J.
    OP
    Investor · Tacoma, WA · Member since 2016 · 120 posts · 112 votes
    10y

    Thanks for your feedback Bryan. If you have, or do, bid at the auction do you use a service? If so can you make a recomendation?

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  • Tom G.
    Investor · Olympia, WA · Member since 2015 · 97 posts · 31 votes
    10y
    Absolutely use an auction group. If you connect with Vestus in foreclosure group in Pierce and build a relationship with Kevin, Warren or Eugene then you get to take advantage of the occasional home run that slips by everyone else and get consistent data for the rest of the deals. I have done over 100 purchases through them and am grateful for their guidance and gladly at the commission. The value is many Tiered. Let me know if you need an intro
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  • Cailyn AunePro Member
    Tacoma, WA · Member since 2015 · 176 posts · 88 votes
    10y

    @Matt J.- Caliber was recommended to me by various people, one of them being a long-term friend who I highly trust. I went to both the Caliber and the Vestus new investor meetings (they both hold them on Tuesdays), then went to both of their Thursday evening meetings where they go over the properties going to auction the next day. I did a lot of comparison to try and vet them out. Caliber is dealing with a smaller number of investors... at the Vestus meeting, I was one of 75 in the crowded room. Caliber's numbers on their ARV's and rehab costs seemed pretty realistic, as Vestus' seemed more inflated. Vestus is one of the big players down there, purchasing more than others... but I also watched how much they paid for some of those homes, and from my numbers, they definitely weren't all deals. The Caliber group will only review properties on Thursday nights that they feel great about recommending the numbers for a flip. From my experience, Vestus went through all the properties going to auction and made them all sound like great deals. Caliber has a breakdown with a print-out of their detailed calculator for each property they feel like you can make money with. Again... you tell me who sounds like they are working for their client's best interest. :o) I haven't yet made a purchase, we are moving funds around to do so... IF we can find a deal that works.
    I have been tracking the min bid prices vs the prices the homes sell for, and occasionally, it seems like there might be one worth having. But not a ton. Hedge funds are still present at the auctions, buying up any homes built in the last 10-15 years or so... I couldn't believe how much one of those homes got big up to. Crazy. I don't know how they make money doing that... but I guess they have a plan. :o) But the Hedge funds typically aren't touching the old distressed ones that need work... at least with what I've seen so far. 

    Anyway... for what it's worth... hope that was some helpful feedback. 

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