First Time Bidding
I'm thinking of bidding a single family house at a foreclosure aution. I'm quite nervious. Here are what I will do to prepare for the aution. Please advise if I miss any.
1. title search
2. market research
3. exterior inspection
By the way, I've just been to an aution which has 15-20 properties for sale and there are 40+ people. why 99% of them didn't bid? They're all seem prepared with all the listings on hand. what were they doing? Were they waiting for buying from REO? :-o
Most of the time, the lender's representative's bid is too high for the rest of the participants to compete. If the lender's minimum is at, near, or even above FMV, where is the value in purchasing at auction?
Most of the time, the lender's representative's bid is too high for the rest of the participants to compete. If the lender's minimum is at, near, or even above FMV, where is the value in purchasing at auction?
A lot of the attendees may simply be there out of curiousity. I go to the monthly county courthouse auction in my county and often will see 100 attendees, of which only 10 will bid. A couple of times, I go to bid on a specific property only to learn that the property was withdrawn from the auction at the last minute. I may sit silently through 20 or 30 property auctions before the judge announces that the property I was interested is not for sale that day.
if they were perpared as you've said or were "seasoned" investors they know that the last bid is the only one that counts and will not get involved in biding wars or "ringers" biding for the realestate co./owner. i only bid if the price is what i consider a great deal and the auctioneer has said ''going twice!"
I believe many of them are out of curiosity just like me. But most of them do have certified fund before getting a bidding number....? any thought on preperation for an aution?
be very very very careful man!
you are preparing to swim with the sharks. Once your money is spent - its long GONE!
do you due dilligence wisely and don't overbid beyond your buy criteria!!!!!!!!!!!!!
I attended my first auction last month and it was very much as you have all said. I am much wiser about the last bid being the most important. I ran up the price beyond our means in in hindsight it probably saved a lot of grief that the bigger fish got it. One thing to do to avoid wasted time - call the bank's attorney's the day before the auction to check if it's still going ahead. Might have already done, but just thought I'd mention it.