Auctions

Has anyone (or anyone you know) purchased their home through an on-site auction?

Our neighbors put their house on the market back in June '05 (way too high, imo) and it sat for months...they wound up reducing it $30k and it STILL didn't move. Now it's Feb '06 and they're putting it on auction...WELL below market value.

We didn't really like the house - it needs work - and even though we rent in the area, we didn't necessarily want to buy in the area. However now we're thinking we'd be crazy NOT to bid - considering how low it could go for.

For those who have purchased - or know anyone who purchased - a house through auction, how was the process for you? Worth it?

It kind of scares me b/c the sale - if you win the bid - is not contingent on an inspector's report...

Re: Auctions

Since you live in the area already, could you approach the seller and ask if you could do an inspection before the auction? If it works out, perhaps they won't even have to go to auction if you can negotiate directly with the seller your self.

Re: Auctions

Colleen, if you had an ounce of interest I would say go for it, but you dont seem to be interested in the house or the area. Why aggrevate yourself

Re: Auctions

The sellers have already moved - back in Sept, I think. Once I gave them my assessment of their home (they offered the house to us at a "neighbor deal" before they listed...then went on to list it $5k LESS than our "neighbor deal" ) they went back to ignoring us They're not very nice people so a part of me is kind of happy they're in this predicament.

My DH is interested in it as an investment - buy it way below value, fix it up and then sell it for profit. Personally I don't think we're in a flipper's market anymore...so I'm unsure.

We'll check out the OH this week and decide, I guess.

Re: Auctions

Collen just be careful of the flipping of a house.

How much work does it need. Usually when you flip a house it only works if you dont pay more than one month mortgage on it. Theres a house around the corner from me that didnt sell when it was a dump and now that its fixed its still on the market. Poor guy has been trying to sell it for months..

SO be weary,please. The demand doesnt seem as high as it was.

Not trying to be negative just weary

Re: Auctions

I don't think fliping homes is so profitable right now, so unless you see yourself living in it, then I am not sure it is right. But, if you think it is completely undervalued and you could fix it up for very little $, thne perhaps, but I am still not sure it is such a good idea with this market.

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We would definitely live in it for about 2 years while we were fixing it up - building equity, etc.

I suppose even if the market remained soft, we'd still turn a profit since it's so below market value. At least that's what DH is thinking.

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Oh ok Colleen I thought you meant to buy, fix and sell not live in it

So this would be your first home for a short while.

Cool good luckkkkkkkkkkkkkkkkkkkkkkkkkkkkkk

Re: Auctions

What is the list price and the features of the home? Once you know that you can do a search on mls to see what other houses in the area with the same features are selling for. This is basically what appraisers do with their "valuation model" Then they will add an extra amt for new ktchens, baths, etc