Buying from an auction.

[Ryan Terwilliger]

Hi everyone, just curious as to how many people pick up SF from auctions like hubzu, auction or tax sales at courthouse. Is this too risky? Do the prices get driven up to retail prices? I am inn Houston and the market seem pretty competitive.

[Allen Maris]

Hi Ryan,

I've purchased 3 properties at auction. I've bid on many more though and usually they end too expensive so I just let it go. Set your max bid and don't go over that, that's the key! Also make sure you know what you're getting. Do a walk through at minimum if possible. 

My very first purchase I lost the auction because I hit my cap. The buyer backed out and they offered it to me instead of putting it back on auction. They asked for a final bid from me and I stuck with my cap price. They sold it to me for that price. I've had that happen twice now where I didn't offer what they wanted but still ended up buying it for my price.

My most recent was 2 months ago, so deals are still out there if you find them. There's also a lot of non-deals, so be strong.

Allen