I accompanied an investor client recently to the courtroom steps in downtown San Jose. He had his eye on a Victorian that was going to auction. The home was recently sale pending at a price of $300,000 but the bank was auctioning the home for $245,000. The experience itself is one worth noting. As there are many steps in the process to buying a home at auction, I will be sharing the process in several blogs and would love to hear of anyone else's auction experiences. As a Realtor, this is not our stage, but many of my clients are now purchasing at Auction and then holding the properties as investments or selling them for a profit (aka flipping).
When we arrived we were the only ones at the back of the courthouse downtown and there was no indication that this was the place. After awhile, a gentleman who looked like a bike messenger joined us. He did not indicate that he was the auctioneer, a competing buyer or otherwise. He just showed up. As 10am approached, the auction hour published by the trustee...several more people arrived, it was a very eclectic group. At 10am, the "bike messenger" opened a black notebook and announced that he would read the properties for sale at auction that day, and he told us quickly that a prospective buyer would need to present good funds, a cashiers check, for the exact bid amount. As a Realtor, this was all a bit suspicious, this did not appear to be a person licensed to sell or auction Real Estate, no business cards, no name tags, no company reputations to give us any sense of security. Yet, my client was expected to present his cashiers check to this gentlemen and then be prepared to take ownership immediately. There are no disclosures, no title reports, no tax statements, Nada! I suppose that goes against my grain as the details are the key to protecting my clients. Stay tuned for more of the auction experience. Again, I welcome your comments.
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