How to get comfortable for Xome auction
Hi Folks,
How do investors get comfortable bidding on auction properties when there are no inspection (when it lists owner occupied)?
I'm looking at a condo as a discount. There's room to rehab but no way to tell how bad the unit is inside.
Most Popular Reply
Hi All,
I agree with @William Collins. I bid on a property - I had a limit. The property came back on the auction and I got it at my max bid amount I wanted to pay.
Now, bidding on homes you can't inspect you have to expect the worst and pray for the best. In my case, although the home was occupied, I found the people were living in deplorable conditions. There was a lot of water damage and junk that had to be removed including some old cars in the garage. Cars form a special situation as you cannot just claim them as part of the sale.
I had to go to court to get the tenant who I learned was "squatting" in the house. That took 4 weeks off my timeline.
To make a long story short, I think I encountered everything that could go wrong when buying from the auction - my budget was busted, my timeline ran over, and I dealt with issues I hadn't anticipated. But I learned so much and due to the bull market, I still made a little money on the deal.
If you want to move forward:
1. make sure you have a contingency plan
2. you have thick skin
3. you have mentor support to lean on.
Good luck!
jen B