Buying at an Auction
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Buying at an Auction (by Roy [AL]) Feb 27, 2024 8:26 AM
       Buying at an Auction (by NE [PA]) Feb 27, 2024 8:29 AM
       Buying at an Auction (by gevans [SC]) Feb 27, 2024 8:33 AM
       Buying at an Auction (by Roy [AL]) Feb 27, 2024 8:35 AM
       Buying at an Auction (by Ken [NY]) Feb 27, 2024 8:51 AM
       Buying at an Auction (by Ken [NY]) Feb 27, 2024 8:53 AM
       Buying at an Auction (by Roy [AL]) Feb 27, 2024 8:53 AM
       Buying at an Auction (by Deanna [TX]) Feb 27, 2024 8:54 AM
       Buying at an Auction (by Roy [AL]) Feb 27, 2024 9:43 AM
       Buying at an Auction (by Ken [NY]) Feb 27, 2024 9:53 AM
       Buying at an Auction (by WMH [NC]) Feb 27, 2024 10:29 AM
       Buying at an Auction (by Roy [AL]) Feb 27, 2024 10:33 AM
       Buying at an Auction (by Deanna [TX]) Feb 27, 2024 10:38 AM
       Buying at an Auction (by Ray-N-Pa [PA]) Feb 27, 2024 11:20 AM
       Buying at an Auction (by Roy [AL]) Feb 27, 2024 12:53 PM
       Buying at an Auction (by MikeA [TX]) Feb 27, 2024 1:49 PM
       Buying at an Auction (by Roy [AL]) Feb 27, 2024 3:00 PM
       Buying at an Auction (by Phil [OR]) Feb 27, 2024 3:54 PM
       Buying at an Auction (by BRAD 20,000 [IN]) Feb 27, 2024 11:47 PM
       Buying at an Auction (by Roy [AL]) Feb 29, 2024 7:17 PM
       Buying at an Auction (by Ken [NY]) Feb 29, 2024 10:04 PM
       Buying at an Auction (by Roy [AL]) Mar 1, 2024 6:50 AM

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Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 8:26 AM
Message:

This Thursday I will be attending an old fashioned house auction where investors meet at a local convention hall and an auctioneer stands on stage rattling off numbers. Most of the these houses are junky looking and with tons of deferred maintenance. 10 years ago, I could have bought these same houses from the owners at between $5K - $10K. I am going to this auction to find out what investors will pay now for these junky fixer-upper houses. Here with each winning bid, the investor must put down $5,000 plus 10% buyers premium on the day of auction. The balance must be settled within 30 days.

Has anyone else here attended a similar auction? Did you buy anything at that auction? Also, were you allowed to inspect the inside of the house prior to the auction?

--71.207.xxx.xx




Buying at an Auction (by NE [PA]) Posted on: Feb 27, 2024 8:29 AM
Message:

Iíve attended lots and bought some. I used to have a 4í crowbar in my truck we jokingly called the master key. --24.152.xxx.xx




Buying at an Auction (by gevans [SC]) Posted on: Feb 27, 2024 8:33 AM
Message:

We have purchased the majority of our properties at auction; most at foreclosure auctions.

They are currently going for 5-10 times what they were when we started!

Out of state investment groups are always in the crowd nowadays. They drive up the prices. --69.80.xx.xx




Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 8:35 AM
Message:

NE,

I never needed a crowbar since the door was always unlocked and usually falling off the hinges. --71.207.xxx.xx




Buying at an Auction (by Ken [NY]) Posted on: Feb 27, 2024 8:51 AM
Message:

Roy,I have bought a lot of houses at those auctions over the years.Make sure you know the rules as far as getting title ordered after the sale before the closing,dont expect to be able to buy a title policy for 2 years so may be difficult to sell it or refi if needed.Those sales are no good as comps as people get carried away and many times pay as much for them as a similar house in good condition so i would not assume anyone would pay similar prices on the open market.If there are a lot of houses learn the houses that will be auctioned at the end,by the time they get to the 100th house most of the bidders will be gone and you will get better deals then. let us know how it goes --73.177.xxx.xx




Buying at an Auction (by Ken [NY]) Posted on: Feb 27, 2024 8:53 AM
Message:

Roy- I am assuming they are tax foreclosures,is that correct? in my area they dont let you in because the county doesnt even own them yet and they are still occupied sometimes --73.177.xxx.xx




Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 8:53 AM
Message:

Gevans,

If the investments groups are there bidding up prices, I will probably leave. I am not going get in bidding war with someone who has more money than brains.

There are probably 20 houses slated to be auctioned on Thursday. Two of them are on the same block where I have houses currently rented. I will be keeping an eye on those and may bid if the bidding does not get insane.

--71.207.xxx.xx




Buying at an Auction (by Deanna [TX]) Posted on: Feb 27, 2024 8:54 AM
Message:

All my auctions have either been tax foreclosures on the courthouse steps (successful), online (mostly unsuccessful), or onsite.

The onsite ones are the ones to watch out for, because they'll make up fake phone bids to prevent the house from selling, if it's advertised as no-reserve but they don't want to actually run a no-reserve auction.

For the tax foreclosures, you peek in the windows and chat with the neighbors.

My question for you is--- where do they get their stock of houses for sale? Who gets the money from the sales?

If it's a tax foreclosure, it's done a certain way. If it's a bank foreclosure, it's done a certain way. If it's an individual or someone's heirs, they're also more likely to do it a certain way.

But for a public auctioneer-type auction with a large stock of gutjobs... someone needed to have collected them. If it's not the taxing entities, who is it? --137.118.xx.xxx




Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 9:43 AM
Message:

I am going to give you all the house addresses and MLS # for the two houses I have my eye on. Since they are listed on the MLS as auction houses, I would assume they are bank foreclosures.

313 Elmwood Ave. Gadsden, AL 35903 MLS: 21853931

1330 Paden Drive, Gadsden, AL 35903 MLS: 21851899

Go look at these two houses and you all tell me what you would bid on them, assuming the photos were all you had to make a decision on. --71.207.xxx.xx




Buying at an Auction (by Ken [NY]) Posted on: Feb 27, 2024 9:53 AM
Message:

Roy- I have no idea what i would bid as i have no idea what they are worth when in good condition.Paden drive looked decent,it looks like it would be better than a ghetto neighborhood but i dont know the area.You are going so be prepared to bid on everything,never know what you might get, i bought a house at tax auction for $100 one time --73.177.xxx.xx




Buying at an Auction (by WMH [NC]) Posted on: Feb 27, 2024 10:29 AM
Message:

Buying at auction in NC is frustrating as there is no end, we discovered. Anyone can place an upset bid within ten days of the last one as long as they bid up X percent (3? 10? I forget.) We bought one place that way.

We'd been inside and it was a total 1970's museum, immaculate. Neighbor, who was a member of the family, let us in. It was an estate sale and the siblings (in their 70's!) were fighting over it - judge ordered it sold at auction.

On courthouse steps, only one bid was placed, the opening bid. We waited 10 days and placed an upset bid. Winner was po'ed, we heard, and placed another bid. We didn't wait this time, went ahead and placed another upset bid.

For the Buyer who was from out of town it was a frustrating experience because he had to come down here to place his bid in person at the courthouse each time. I think we did two rounds and he dropped out. Great little brick house with nice lot, we got it at about 50% of value at the time, now it's worth 4 times what we paid. Great little cash cow. --173.28.xx.xxx




Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 10:33 AM
Message:

Ken,

Since I know the neighborhoods here well, I can answer your questions.

313 Elmwood Ave is a typical slumlord house where the owner milked it for every last drop of milk it could produce. If you spent $25K on it, that would produce a resell value would be around $50,000 due to the crummy D adjacent hood. House would rent for $650/month.

1330 Paden Drive is in a C hood and since it is a 3/2 with a garage, the numbers here are different. Re-sell value would be around $100K and rent would be around $1,000/month.

In about 2 hours, I am going to see if I can get inside 1330 Paden Drive. --71.207.xxx.xx




Buying at an Auction (by Deanna [TX]) Posted on: Feb 27, 2024 10:38 AM
Message:

Elmwood - I would drive by and check out the neighborhood. Is it a neglected house on a block that's otherwise good, or is it representative of the neighborhood?

I like the metal roof. Electric panel looks newish from what I can see. That's good. I'm concerned about the stovepipe. Is that normal for heating your houses in your area? It says it's a 1400 sf 3/1, no HVAC. Since I can only see one side of the house, I can't guess at the kitchen/bath layout. Since I'm not seeing vent pipes over that back addition, I guess that's an eat-in kitchen, with the cooking part facing the other direction? It's also hard to tell which side the living room is on, vs what side the front bedroom is on, and how far back those go, because I don't know the meaning of the ventpipe. Here, I see those in living rooms, but unless your living room stretches along the entire length of the left-side of the house, it doesn't make sense.

It would be worth peeping in the windows. I have one that's similar-- it was built in 1940 but is only 1100 sf. With that one, the only bathroom is a jack-and-jill bath between two bedrooms, so in order to use the only bathroom, you need to cross through someone's bedroom. Because it has two doors, plus the linen cupboard, plus the hot water heater closet-- it's a very cramped bathroom, with bad layout. It also has washer/dryer hookups in the kitchen. So, when you look around, keep an eye open for plumbing/venting clues. I'd also be cautious about water damage from a leaky roof--- because someone was so diligent to spring for an awesome roof for a sad house. They needed to have some kind of motivation to do that.

If I was comfortable with what I saw through the windows, I'd probably pay $5-$12k on that, and expect another $40-$50k in renovation costs. More, if labor is more expensive in your town. Around here, it would rent for about $900/month, but probably more if you could find the right person.

Paden - It would probably sell for about $35-$65k in normal times to an owner-occupant around here. Maybe $60-$75k to an out-of-town investor who can't compete with the big dogs in his own territory. I'd be willing to do $20-$25k on it, but it would be a miracle if I got it. At 2881 sf, that one is more of a flip than a rental--- it would be too big to get a good price on as a rental, but it would cost twice as much to re-renovate it if it was abused by someone who looked good on paper but fell apart. --137.118.xx.xxx




Buying at an Auction (by Ray-N-Pa [PA]) Posted on: Feb 27, 2024 11:20 AM
Message:

Saturday I was at a place- looked like an estate. The beat up doublewide on three acres required new flooring through out due to its leaky roof. You get the idea of the building condition and quality?

It was located however near one of the more desirable areas in the county - although this place is out in the sticks. It went for $71,000.

After repairs, roughly $22,000 it would rent for $1,200, but it is still just a double wide with a basement --24.101.xxx.xxx




Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 12:53 PM
Message:

Deanna,

The house at 313 Elmwood is more representative of the dirt poor neighborhood. I may pay $5,000 for the house but that would be my max.

Just got back from seeing 1330 Paden Drive. There was a lockbox on the door but I did peek through the windows. This 3/2/2 house with central H/A house has some real potential. However, at an auction the most I would bid for this house would be $30K. --71.207.xxx.xx




Buying at an Auction (by MikeA [TX]) Posted on: Feb 27, 2024 1:49 PM
Message:

I've bought quite a number from auctions. If I can get in that helps me know the conditions. Pier and beam is easy to stick your head in the crawl space and see if it's newer copper, pex, or old iron water pipe and you can get a feel for any bizarre electrical or plumbing mods that are going to have to be fixed. Get a quick look at the water heater, furnace, and breaker box. Peek in the attic for knob and tube wiring. If I can't get in then I peek through the windows and assume that all the mechanical systems are going to have to be replaced and bid accordingly. I quit going to them the last 2-3 years because bidding has been crazy and just recently started going back. It's calmed down a little more recently but still over my max price. I'm not really wanting to acquire more but I guess I'm an addict that still needs his fix.

--209.205.xxx.xx




Buying at an Auction (by Roy [AL]) Posted on: Feb 27, 2024 3:00 PM
Message:

MikeA,

I have attended several house auctions over the last 17 years and at every one I saw people bidding twice of what I would have bid. However, I still like to go and watch what happens at these crazy auctions where people overpay for junk. --71.207.xxx.xx




Buying at an Auction (by Phil [OR]) Posted on: Feb 27, 2024 3:54 PM
Message:

Went to a large auction in 2010. About 120 foreclosed houses on the block in a 100 mile radius. Bought the one I was interested in because: it had been on the market thru MLS, had 2 full price offers that they couldn't accept because the commitment had been made to the auction, was in perfect shape (I got to go thru it prior), and I picked it up for $40,000 under full list price. Paid about 6K more than I had hoped to, but I was still happy. Has tripled in price. Think I paid 117K. --76.138.xxx.xxx




Buying at an Auction (by BRAD 20,000 [IN]) Posted on: Feb 27, 2024 11:47 PM
Message:

Roy,

I purchased many homes at various types of auctions.

Locally the tax and foreclosure auctions are now online so we cannot eyeball the competition

AND easily sniped at the last second.

Tip: bid on the PARCEL ID NUMBER, not the street address. I accidentally bought a drainage ditch BEHIND the beautiful house. $6000 fine to back out. I was not the only bidder who mistook the offering.

Tip: don't tug on your earlobe during the bidding!

BRAD

--73.103.xxx.xxx




Buying at an Auction (by Roy [AL]) Posted on: Feb 29, 2024 7:17 PM
Message:

I attended the auction today where 10 houses and 5 vacant lots were on the auction block. The slumlord house sold for $22,000 and the decent 3/2/2 house sold for $60,000. There were approximately 75 people in the room and I think 2/3 of them were 1st time homebuyers hoping to find a bargain house at fire sale pricing. Nothing today was sold at fire sale pricing. The realty company sponsoring this auction collected the 10% buyers premium and that amounted to $37,000. --71.207.xxx.xx




Buying at an Auction (by Ken [NY]) Posted on: Feb 29, 2024 10:04 PM
Message:

Thanks for the update- gotta be there to get the bargain if one exists --74.77.xx.xx




Buying at an Auction (by Roy [AL]) Posted on: Mar 1, 2024 6:50 AM
Message:

Ken,

More important though, you have to know your local housing market well enough to know what a bargain actually looks like.

Yesterday, the slumlord house would have been a bargain at between $5-$10K. The bidding started $10K and within 2 minutes, the final bid was $22K.

The 3/2/2 house which I was tempted to bid on, would have been a bargain at $30K. The opening bid was $25K and within 2 minutes, the final bid was $60K.

--71.207.xxx.xx



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