Today I attended a foreclosure sale at the Tulare County court office with my broker/boss. He bid on a three bed room, three bath home with two stories, a swimming pool, which all stands on a large lot. We estimated the house retail value of $165,000, the opening bid for the house started at $104,000. We checked with the title company to make sure that the bank was foreclosing on a first trustee, which it was. Next, we checked with the Tulare county tax collector to make sure that there was no tax due, which the taxes were current. Before we went to the sale the broker stopped at the bank to get a cashier’s check. He gave me a good tip by telling me in the future to set a maximum price before going to the auction. This is so you don’t end up overpaying for the house. The cashier’s check was put in the brokers name and from there went off to the sale. At the sale there were three gentlemen auctioning off the houses. That day there must have been twenty five houses sold, postponed, cancelled, or not bided on which those went back to the bank. When our turn came up there were three bidders who pre-qualified to bid, which one of them was my broker/boss. He ended up having the highest bid which was $108,000. It ended up being a good day for my boss he should be able to put a little money into it to fix it up and flip it for a good profit. Today was a good experience for me.
Good advice and a good experience!
ReplyDeleteAre there always people willing to bid on a property? Is there a reserve price like on ebay or could you potentially buy a property for nothing?
ReplyDeleteWhat happens is there is a starting bid for each house. So prices are way too high and some are ok. Most of the time the opening bid is what the previous owner still owes on the house. If no one bids on one of the houses in the auction then it will go back to the bank or whoever gave financing to the previous owner.
ReplyDeleteGood advice
ReplyDeleteGood advice and when it works... tough market for flipping
ReplyDelete