Purchasing properties through Auction.com

[Kevin Korntved]

Hello BP,

I have found properties that I have wanted to purchase on auction.com.  I have even seen a few sell for prices I would be willing to pay, but I don't know much about the process of buying through auction websites.  What are some of the important things to look into before purchasing these properties?  Can you view the interiors legally? What if the building has foundation issues?

Thanks in advance.

[Alex P.]

Hey Kevin, typically you can't view them legally. That said a lot of people will peek in windows and walk around the property anyways. I typically check to see what permits have been drawn if any in the last few years, do a title search, see what price it was foreclosed for because that will be likely close to the reserve if there is one. It's a risk to buy them but you can sometimes find good deals. I luckily haven't inherited any foundation problems. If you can't see the inside at all, assume that it is a complete gut job and account for that. Also in my county if it has been vacant for more than a year power is disconnected at the main, in order to get it turned back on electrical must be updated. Which means you're gutting it. Check your municipal/L&I/utility company for that as well.