How does the asking price start when a house is on auction?
I realize it’s heaviliy dependent on market or whatever. but how does the bank usually se tthe asking price on a house.
Is it at the principle on an existing mortgage minus 6% (realtors fees). Can I get it any better than this? It’s a mortgage auction. Not a tax sales auction. If you’ve been to an auction. What’s it like. How many bids are place on these houses. I’m in Texas.
Be aware that the lender involved will have a bidding representative at this auction as well. If other bids do not rise to the level which the lender wants, the lender bidder will outbid the remainder to buy the house at foreclosure for the bank.
So, if the bank thinks they can own the property and sell it for $100K, they’re going to bid up the price to very close to that figure.
Why would their be an agent’s fee if the house is being sold at auction? There are no agents involved.
The starting bid is basically the lowest amount the bank is willing to accept. You can safely assume that if no one buys the house at auction, when the bank does list the home with an agent, the list price will be more than that starting price at the auction. However, the big advantage to waiting until the home is listed is that you’ll have the opportunity for a professional inspection so you know what problems you’re buying.
There aren’t likely to be many bids at auction unless the house is a great deal. Auctions generally only appeal to investors. Since they know they’re buying sight unseen, the house has to be an amazing deal or they want no part of it. In other words, be wary if you’re the only one bidding since it sounds like you have no experience in this area.
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How much someone owes on something has nothing to do with the value. What if the person defaulted when the home was almost paid off? Would the starting bid be $5,000? Of course not.
Good advice above mine. Be very careful buying a house at auction, you never know what you’re really getting. Make sure it’s a really great deal.
References :
Be aware that the lender involved will have a bidding representative at this auction as well. If other bids do not rise to the level which the lender wants, the lender bidder will outbid the remainder to buy the house at foreclosure for the bank.
So, if the bank thinks they can own the property and sell it for $100K, they’re going to bid up the price to very close to that figure.
References :