Auction Closings And Payments - FL
I am hearing that most auctions require 10% down, 30-days to close. Is this really the norm. I saw other posts that show where some auctions are 100% down and others 10% down, 10-days to close. Where do you find out the specifics for the auctions regarding closing requirements. I would LOVE to only have to take 10% in, close in 30 days with an investor that I can assign the property to within that amount of time. Let me know what you know on this topic. Thanks!
I've purchased 30 properties through auctions in the past 6 months all were 10% down (minimum $2,500) 30 days to close. You can speak with the auction house directly about the requirements. There are enough auctions out there that have 10%/30 days so i would stick with those if financing is an issue. also i would recommend going to auctions as an observer to get the feel of the auction process. Don't forget also that there is usually a buyer's premium that you have to pay, generally 5%, to the auction house. while all of my deals were 30 days to close, some took up to sixty days or more, but plan on the 30 days so you don't forfeit your deposit.
I gotcha! So even on a winning bid of say $15,000, there is a usual minimum (could be $2,500) that is required. Somewhere I read that you should take several cashier's checks to the auction of varying amounts (vs. cash) to make the down payment. Sounds like you are holding monopoly money. If you don't have the exact amount, will the auction house make out a check for the difference? (e.g. Bid wins at $50,000, down payment is $5,000 (10%), but I only have two cashiers checks. One is $1,000 and the other is $10,000). What happens?