Need advise on real estate online auctions

[Zaheer Jabbar]

Hey Guys, can u recommend a reputable website where houses are auctioned? And here is another question: what are the major disadventages of buying a house on online auctions, and number two: what are the major benefits or advantages? Thanks in advance.

[John Wielgolinski]

Hi @Zaheer Jabbar

I have had success using Hubzu.  Purchase two properties from here.  There are generally some buyers fees associated - technology fee and buyers premium - so figure those into your buy price.  Also, the properties typically have a reserve value so being the highest bidder doesn't necessarily mean that you will get the property.

You certainly need to do a bit of homework.  These properties are also typically listed so you can usually get into it to view.  Also, do a quick check of the county taxes and municipal ordinances.  I haven't run into a tax challenge, but I have run into houses that have significant code violations.  A simple call to the city inspector will answer that.

All that being said, if you are high bidder and don't meet the reserve, the seller will generally make you a counter offer.  Don't accept it.  The property will go back up for auction again.  If you were the high bidder last time, chances are you will be the high bidder next time.  Let the seller come down to the price.