Going To The Auction
I have a question i see a nice home that is valued at $93,00 per the county. I would like to bid the auction house has put the home on a "AS IS" sale with a $15,000 escrow deposit due the day of the auction.
Does this mean i can get my money back at the end of the auction if i dont win the bid.
Am i responsible for the back taxes or leins?
Do most private auction companies sell the house "as is" or should look for problems?
Do i have to pay CASH immediatley or can i finnace it and close within 30 days?
[ Edited by goodoleboy on Date 07/18/2004 ][ Edited by goodoleboy on Date 07/18/2004 ]
Read the auction rules very carefully. They will answer all your questions. You can get your deposit back if you don't win the auction - you usually don't even have to give it to them, you just show it, they inspect it and you hold onto it. If you win, then you hand it over. The auction folks will usually tell you if there are back taxes, but if its a condo, for example, and condo fees are in the rears, you may need to have checked into that with the mangement office before the auction date. Auctions are usually sold as is, and yes indeed, you will want to go to the site and inspect it carefully (bring someone who knows how to inspect if you do not) and make note of all needed repairs. Then go home and call contractors to see how much it would cost to rehab the property. Then double that amount, just for good measure.
Different auctions have different rules about when you need to pay it off. Read the rules twice, just to make sure you don't miss anything. All sales are final at auctions!
And don't be dispappointed if you don't get a good deal. The last auction I went to, someone passed around a flyer of a neighboring condo for sale - same year, style, layout, everything, with a sales price. It was right around the comps I had found. The last bidder went over ths value of the comps by $20,000. He got carried away, and I just walked away, vowing I'd never waste my time on property auctions again.
Let us know how yours went. Maybe times have changed....
Marlene