AJ Billig Auction Baltimore

[Joe Gemma]

Does anyone have any experiences to share about one of these auctions? I'm considering attending one later this month just to check out what the process is like.

Some curiosities that I have...

Are there usually a lot of investors/bidders there?

Do these usually sell pretty close to market value?

Any general warnings/things to look out for if bidding (i.e. lien issues, scams, etc)?

As always,

Thanks BP community

[Ned Carey]

AJ Billig is a good auctioneer. They tend to get decent crowds and prices for the seller, but that is relative to the area. Better areas will get bigger crowds.  I haven't been to a Billig auction in a while but based on the investor market in Baltimore my guess is they are getting very good prices for seller right now. 

There has been an influx of new investors. This is causing increased competition for investor deals.   Because they are new, these investors often don't know cost and required margins as well as they should and often push prices up way above what I would pay. Of course a different crowd shows up at every auction and sometimes you get a bargain. 

In general you don't need to worry about lien or scams. Read the terms of the sale to make sure you are entitled to clear title if you win. 99.9% of the time that will be  the case (Courthouse step foreclosure auctions are an exception. Know what you are doing if bidding there) The title company that settles the property will make sure you have clear title.  Make sure you get title insurance for you, not just your lender. 

Public auctions held on site of the property are a great way to learn and I suggest you go. Not only will you learn about the auction process, it will help you learn the market.  You get to see in rel time exactly what other investors think a property is worth.