Buying a home at an auction is a great way to purchase a home. There are generally two types of auctions. A private auction is where a bank has foreclosed on a property and sells it at auction to the high bidder. The auction is normally held by a third party auction house. Buyers are usually given the opportunity to inspect the property prior to the auction, however they are purchasing the property as-is. A deposit is required from the winning bidder on the auction date. Buyer’s are given 30-45 days to close which allows for time to obtain financing.
The 2nd type of auction is a held by the Public Trustee of the county where the home is located. Normally there is no opportunity to inspect the property prior to sale. Buyer’s must have cash for the full purchase price on the day of auction. There are only a couple of days to perform due-diligence, title, tax, lien checks, etc.. The property you are bidding on may or may not be occupied. If occupied, the buyer would need to evict the tenant or prior owner if they do not want to vacate voluntarily. There are intricacies and risks in buying homes at the Public Trustee’s sale and it takes someone who can identify good deals, and who understands the process. We have experience in purchasing homes at a Public Trustee sale.