Going to the Auction

[Alan Ouellette]

Hi All,

I am going to a real estate auction to purchase my 1st rental.  I am researching the property to get as much information as possible in prep.  Here's what I have so far.  

City Property/Tax Records (Same owner for 30+ years, Assessment value $131k, last refinanced in 2005)

County Lein Records (Tax lien was released to allow mortgage company to auction, owes $19,400 in back property taxes)

Report from Auctioneer

Notice of Sheriff's Auction from County

Researched comps in the area to know possible market value ($185k-$215k)

Looked at images from Google maps street view

It's vacant and I've driven by it a few times

I know we'll be able to go in an look around at the auction but other than that, is there any other information I might want to look up before auction day?

Many Thanks!

~Alan

[Lynnette E.]

Check utilities if they transfer with the property.  In some states utilities like sewer and water can add up fast and they attach to the house.  

Check for any city/county services such as lawn care and for any code violations with reimbursable costs and or penalties.

I buy a lot this way and have NEVER had the taxes skipped, generally I have to pay them, rarely the seller pays at transfer, RARELY.  Check that.  Also note if your tax amount is just the taxes or if that is the total cost.  Often if they are not paid on time there is a late fee, plus interest and that can double the cost for the taxes fast!

Know if everything is cash only, present at the sale or if you have 24 hours to get the cash.  Also, will the deed be recorded if the taxes are not paid?  Some places will not record the deed without the taxes being paid first.  BUT do not pay the taxes until you have a signed deed.  Things happen, and there will not be a refund if the sale is cancelled for something like a bankruptcy.

Check for any government loans against the house for construction type of projects, there were some energy related ones a few years back.  If the loans are government they may not be cancelled.

Check for any leased stuff on the house, often solar panels.  You might get stuck with a horrid lease...on outdated technology.

Set a limit.  Know your number.  Do not let the excitement, deal, everyone's bidding make you second guess your number.  There will be other deals.  Do not let a stupid over bidder blow your funds.  You make or break many deals by how much you pay to start.  Don't blow it!