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Home >> Stock Forums >> Sheriff Sale Auction

Sheriff Sale Auction

ADEBISI said: "Who has been to one? Who has bought a sheriff sale home? What tips and advise would you have? I have been doing a lot of research and have already attended one auction, I think I have got the idea down and have a realtor friend of mine who is assisting me, just wondering if anyone knows anything that might be useful, thanks in advance for any feedback!"

thezster said: "If you have a realtor helping you... then you know the rules/regulations...... Sheriff sales on the courthouse steps can be dangerous... you have to buy the property "sight unseen" so to speak, and be able to pony up the cash within one hour of the auction (typically). This is the best way to buy properties if you're willing to take the risks involved. My only piece of advice is "don't fall in love with any particular property - nor get caught up in the bidding action. Set your limits before you go - and stick to them. Good luck to you..... I hope it works out for you..... Personally, I'm almost out of the flip n flix business (one more property on the market at the moment) - and will stay out until prices begin to stabilize. It's a heavy buyers market now - and even "buying right" doesn't guarantee success in the flipping market. I just bought a home for $125K under asking price (that's huge).... but begin to wonder if I paid to much in the current market. "For Sale" signs are all over the place - with lots of "new price" tags attached to them..... sellers are hurting - and buyers are waiting for the bottom.............."

ADEBISI said: "[QUOTE=thezster]If you have a realtor helping you... then you know the rules/regulations...... Sheriff sales on the courthouse steps can be dangerous... you have to buy the property "sight unseen" so to speak, and be able to pony up the cash within one hour of the auction (typically). This is the best way to buy properties if you're willing to take the risks involved. My only piece of advice is "don't fall in love with any particular property - nor get caught up in the bidding action. Set your limits before you go - and stick to them. Good luck to you..... I hope it works out for you..... Personally, I'm almost out of the flip n flix business (one more property on the market at the moment) - and will stay out until prices begin to stabilize. It's a heavy buyers market now - and even "buying right" doesn't guarantee success in the flipping market. I just bought a home for $125K under asking price (that's huge).... but begin to wonder if I paid to much in the current market. "For Sale" signs are all over the place - with lots of "new price" tags attached to them..... sellers are hurting - and buyers are waiting for the bottom..............[/QUOTE] did you ever actually buy a sheriff sale home?"

thezster said: "Not myself. I know the rules and regulations and potential for profit and disaster involved. I've never been willing to purchase a property "sight unseen" - as you never know what you might run into... I've always stuck with repo's..."

ADEBISI said: "how do you find info on repos and foreclosures, do you contact the banks directly, if so how?"

thezster said: "[QUOTE=ADEBISI]how do you find info on repos and foreclosures, do you contact the banks directly, if so how?[/QUOTE] I've always worked with a realtor on repos. They get all the listings, the banks are willing to pay the fees... and the realtor assists me in seeing the house, determining fair market value, and putting together the offer..."

ADEBISI said: "of friend of mine is a realtor, and he told me he has never dealt with repos, is there a certain type of realtor I should be contacting?"

thezster said: "Find a good realtor that's been in the business for a while. They usually have sources of all the repos on the market - how much the bank has invested, how long on market, yadda/yadda/yadda.... Never offer the bank what they're asking - which is usually a plain ole market price. Find out what they have invested in the property - then offer a bunch less than that for starters."

ADEBISI said: "I had my realtor do a little research he contacted numerous banks/mortgage companies asking about repos and they all told him basically the same thing that they deal with a certain company and they usually sell them for market price..."

thezster said: "[QUOTE=ADEBISI]I had my realtor do a little research he contacted numerous banks/mortgage companies asking about repos and they all told him basically the same thing that they deal with a certain company and they usually sell them for market price...[/QUOTE] His answer is kindasorta correct. Most banks deal with the same "real estate companies" over and over. They usually "LIST" them at market price - and sometimes actually sell them for market price - especially if they're in good condition. However - I'm assuming you're looking for the "repair/remodel" type of repo - that, just like any other home - will not bring market price. The object of buying repos is - knowing that the bank does not want to be a property owner - as well as knowing exactly how much the bank has invested (meaning the original owner lost his equity, if any, when the house was reposessed). In today's depressed market - most banks will jump at the chance to get rid of a property for little or no more than what they have invested in it. If it's a "fixer upper" and has been on the market for a while - they'll often sell it for less than what they have invested. My last repo purchase was originally listed "at market" of $195K. I knew through court records that the bank only had $175K invested - and, on top of that, it was a fixer upper (needed new siding, carpet, paint, bathroom fixtures, etc). I offered $170K - and it was rejected. I waited 30 days - and made another offer - this time $160K - - - We settled on $164K within 2 days of the second offer. I put $12K worth of improvements into the house - got a contract on it and am closing week after next - sales price $209K."

ADEBISI said: "thats great, I am just having trouble finding a property, any other ideas then what Im already doing?"

thezster said: "Find another realtor! Sounds like the one you've got isn't very experienced in what you're trying to accomplish. That's not necessarily a slam..... some realtors specialize in selling properties - others in buying properties - some in high end properties - some in slums..... you've got to find the one that fits your needs.... and the one you've got doesn't."

ADEBISI said: "ok, so what type of realtor am I looking for? Should I just start calling local realtor offices and ask for people who specialize in investment properties. I will still keep my friend around to sell for me since we have an arrangment set up for his commisions."

thezster said: "[QUOTE=ADEBISI]ok, so what type of realtor am I looking for? Should I just start calling local realtor offices and ask for people who specialize in investment properties. I will still keep my friend around to sell for me since we have an arrangment set up for his commisions.[/QUOTE] That's one method... I found mine by driving through neighborhoods, identifying old "fixer uppers" that were for sale. I would call the broker representing the property and begin a discussion about that particular property - as well as other "repo/fixer upper/distressed" properties. Any good realtor wanting to make a buck or two will be happy to assist you in finding the proper person to identify and work to sell to you...the type of property you're looking for. Once you find a broker that you get along with - it's then time to get serious - and let him/her know that you're interested in buying/selling properties for investment purposes. If he/she knows that they're looking at multiple comissions over time - they will become a lot friendlier - and will tend to work harder for you."

ADEBISI said: "hey Z, you still investing in real estate?"

thezster said: "Kindasorta, but not really..... I'm currently looking for raw land to build on - for a profit - rather than the fix n flip business..... The region where I now reside is so extremely out of whack.... there are few viable options for making any decent $$ on real estate.... total buyer's market - and I'm not ready to add my "for sale" sign to the other 20 on every city block...."