Online Auction Process

[Daniel Kramer]

There is a duplex up for auction on auction.com, literally around the corner from my primary residence. I'm still pretty new and have never experienced an auction but I don't want to miss the opportunity.

It's cash-only, online auction which ends in a few days. I'm trying to do all my research, but also thought I'd ask around here.

How literal is "cash only?" I asked my local bank that does in-house portfolio loans of they could put something together that satisfies the transaction and they said, "it's fine as long as there is a purchase agreement, water is on, and we can get an appraiser in there. Money is wired by the bank at closing." Is this true? The idea of buying an auction and then not being able to follow through is intimidating.

Thanks!

[Daniel Kidd]

@Daniel Kramer I just finished helping an out of state investor with a home purchase through auction.com. The Transaction Coordinators that they have are very responsive and I found Auction.com unreasonably helpful every time that I called or emailed them. 

You will need roughly 5% of the purchase price as soon as you win for the earnest money, and so long as you can close in 30 days you should be fine. Having a good agent will help you be more creative if you need an appraisal or something for a LOC situation or hard money.

We had no issues getting all inspectors in the home, and it would have been rather simple for an appraiser to get in there as well.