overbidding?

Question

Does anyone in here know about overbidding at county auctions? My agent says that I don't need to go to the auction, and put up the 10% deposit on this property. I can just wait until the court date and put in an overbid (which works out great for me). This sounds like it shouldn't make sense, because why go to the auction and tie up your cash at all? Anyone familiar with this?

Please help.

Account Closed · Answer

That doesn't make much sense to me.

To me an over-bid would be to request the auctioneer to bid for you up to a set price. He'll have an assistant assigned to bid for you and stop whereever your competition stops, so you might or might not pay the full amount that you authorized.

Each county is different and each auction house is different, and the rules for each classification of auction might be different.

Why is the property being sold and by whom?  Call the auctioneer and ask what the rules are for that specific auction.

You'll be expected to pay for the property if you have the winning bid, so how are you planning to pay for it if you can't even put together the down payment money?

Jared B. · Answer

Maybe they're overloaded.  Anyhow, what then, is an overbid?

Jared B. · Answer

Sorry if I wasn't clear.  I didn't mean overbidding at the auction, I was asking about overbid's in general.  How do they work, etc.  Here's some background to why this has come up...

I found a lot that I'd like to purchase.  It's being auctioned Sunday.  They want 10% deposit at the auction ($5k of which needs to be cashiers check or cash).  I was told (by my agent) that once the auction is held anyone can go to the court and "overbid" on the property.  Why bother with going to the auction then?  Why would I want to tie up tens of thousands of dollars when I could just go and overbid?  It doesn't seem right and I'm looking for more information on the process and what to expect.

I would love to purchase this property if the price is right.  My problem is that I found out about it yesterday and the auction is Sunday.  I can't pull together $35k-$45k that fast.  I don't have that kind of capitol on hand.  I may be able to pull in partners, especially if I have the time to do so.  This is my first property purchase.  I am, as they say, green.

Any information on overbid's would be appreciated.  Thanks.