Author Topic: buying a home on auction, first time, what should I bid?  (Read 10037 times)

mrtimo

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  • Location: WA
buying a home on auction, first time, what should I bid?
« on: February 14, 2015, 12:34:17 PM »
I'm thinking my max bid for the property below would be $120k. Is that too low? Too high? On the second link it says the total estimate debt is 136k, and it also says:

Quote
VALUE-BASED BID: The beneficiary of this property has provided or is expected to submit a BID based on the CURRENT MARKET VALUE as determined by the beneficiary and BELOW the Total Estimated Debt.
Does this mean the person that is living in it is going to bid?

http://www.zillow.com/homedetails/2724-E-14th-Ave-Spokane-WA-99202/23530104_zpid/

http://www.auction.com/washington/residential-auction-asset/1818913-15375-2724-e-14th-ave-spokane-wa-99202-e_2770

MikeBear

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Re: buying a home on auction, first time, what should I bid?
« Reply #1 on: February 14, 2015, 01:04:09 PM »
AS-is, no disclosures. Do not disturb occupant.

All VERY important things to read. You will not get this house for less than what's due on the mortgage, as the bank will bid against you. YOU will be responsible for going to court and evicting the occupant. Said occupant will be pissed, and will most likely strip and/or destroy as much of the interior as he can on his way out the door.

Personally, I have never seen an auction property that has ever gone for a price where it's worth purchasing. They always go for a price where after repair, you've paid for fair value, and can't make a profit. My wife and I buy, rehab, and resell houses, and have done so for 25 years.

Another Reader

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Re: buying a home on auction, first time, what should I bid?
« Reply #2 on: February 14, 2015, 01:36:59 PM »
I do not know anything about the foreclosure process in Washington, and the process varies among states.  You should read up on that, talk to some local investors about the auctions, and maybe attend a couple to see how they work.  The statement says the foreclosing bank will bid what their current appraised value is.  If you would like to pay above current market value, submit a bid at the auction.  The opening bid is irrelevant.  In this case, the total debt is around $136k.  If the bank's appraiser values the property at $100k, that's the bank's bid.  If you want to offer more, they will allow you to buy the property instead, subject to the rules of the auction.

math-ya

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Re: buying a home on auction, first time, what should I bid?
« Reply #3 on: March 22, 2015, 06:59:01 AM »
Auction.com is a totally bs site. You can't really buy anything from them. If you bid on a property they will always have a auto bidder out bid you. It's similar to those penny auction sites. It preys on real estate newbies, beware!