Auctions vs REOs

Auctions vs REOs

I have found a site that allows you to "silent bid" on properties at auctions and you get the result whether or not you won when the auction takes place. They give you the address and all and you can go look at the property.

So my question is this. I have never dealt with public/tax auctions. Is it a good or bad idea. I know all of the houses are sold as is. But so do REOs, or am I wrong?

I have heard that you can buy a really good house for a fraction of a price at these auctions and I know people who do just that - buy at auctions and flip it.

Any suggestions?



how are you bidding?

I have not been to a live auction, but have checked into it and understand that you have to have your money ready right then and there to purchase. If this is a "virtual" experience how are you supplying your earnest money? What is their fee? They charge 10% on the first property and 15% on the 2nd (or more) properties here in AZ.

Public auctions usually have all the homes on open house certain days of the weeks prior to them going up for auction so you can look at them first.

I have been concentrating on REO's and I WOULD NOT purchase sight unseen. In this market it can look great from the outside (or a photo of the front) and then when you get inside, the coppers gone, it's grafitti'd inside, holes in drywall, roof leaks, the kitchen cabs and appliances are gone.

I would try one first as a spectator and see how it goes. I thought the fees associated with the auction were too high and cut into my renovation budget.

Auctions vs REO

rbncowgirl, that is great advice. Always inspect the propeties before purchasing. Do all the homework and make sure the values make sense for you to bid. Tax auctions do vary from state to state so buyers must understand exactly what rights and responsibilities they have in a tax sale. I bought a tax lien in my state but the former owner is suing to overturn the sale. He'll eventually lose but it costs time and money to settle the situation.


If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125

Syndicate content