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Updated over 2 years ago,
How to purchase a property that's listed for auction?
In this seller's market, I see a great number of distressed properties going for auction rather than a straight sale. I suspect people will likely bid them up higher than they're worth, especially considering repairs needed and subsequent ARV. And, my guess is that real estate agents are encouraging owners to extract as much profit as they can from their houses in poor condition, which boosts their auction fees as well.
Is it possible to purchase a property prior to the auction, if its already been listed with an auctioneer? And if so, would I approach the auctioneer or the owner with an offer? I don't want to completely cut the auctioneer out of the deal, or incur any unnecessary fees for the owner for breach of contract with the auctioneer. I planned to make a non-traditional offer of a partnership agreement between the owner, the auctioneer and myself, which has the potential to make even more money for everyone than the auction.
Is this possible? If so, please explain how best I should proceed.
Thanks!
:-)