WHATIS YOUR EXPERIENCE WITH AUCTIONS!

[Nico Burgess]

What tipis do you all have regarding trying to snag a property from an auction? How do you guys gauge how much money is too much?

[Will Fraser]

Hi @Nico Burgess, and welcome to the BiggerPockets forums!  Auctions are similar to any other sight-unseen sale in that you'll almost never see the inside of the home or be able to do any inspections prior to bidding.  Your best play at buying at auction and being smart about it is to:

• - Run your numbers excellently
• - Assume it's in rough condition, work off the exterior clues you can observe
• - Call the utility companies and get the past 12-24 month bills from the house (indicates systems functioning, etc)
• - See if you can get some "advanced info", like former zillow rental pics, old MLS photos, a neighbor that has the scoop, etc.

There are some deals to be had, but it's a far cry from the "pennies on the dollar" world of pre-2015 auctions.  Zillow estimates that properties bought at auction are purchased at an effective 7% discount.  Not a huge savings in light of the risks involved, but for a prudent investor a return can be made.