I am in no way afilliated with this, it came in my e-mail and I know there are a few investors on here who may be interested.

3/31/2006 1:16:05 PM

AuctionFirst handled the auction of a home on Wickham about a month ago. Their terms are a little sketchy for most people who aren't experienced investors.
iirc:
You basically get a two hour window to view and inspect the property. You can't set up a showing before the auction. Once you win the auction you have to put down a big deposit (10% I think.) You have 30 days to complete the transaction or else they keep your deposit and you're SOL.

Not everyone can knock out a real estate transaction in 30 days. If your lender, title lawyer, etc. drops the ball and can't make the closing date you would be SOL.

Also, you really have no way out of the contract if you find out something horrible after the auction. There are plenty of environmental hazards that could result in 10's or 100's of thousand of dollars in cleanup fees.

It will probably be a good deal for someone, but it will probably be bought up by a corporation/person with big cash and limited liabilities due to the nature of the sale.

[Edited on March 31, 2006 at 3:47 PM. Reason : s]

3/31/2006 3:45:00 PM

A good lender can whip out a loan in >14 days for a qualified buyer.

As far as the other issues with the property thats one of the benifits to the seller to sell at auction. They dont have to deal with any kind of contingencies. (inspection, finance, etc.) Also, if you dont complete the transaction your deposit will pay for re-auctioning the property. It looks like this guy has spent a bunch of money adding on to this home but none of it is in harmony with the original section. They are probably selling it at auction because it would take too long to sell on the regular market.

Its kind of crazy to think of spending hundreds of thousands of dollars at auction format with only seconds to make a decision. I am gonna go watch it though, it should be interesting. It is far enough up Brent and away from the duplexes where it should sell.

3/31/2006 4:21:06 PM

^ No doubt that a good lender can knock it out very quickly. I'm closing on Monday and I just picked my lender about two weeks ago. Still, it's something to be concerned about considering that time is an absolute key factor in this type of thing. If someone drops the ball a week before closing it is too late to find another lender.

[Edited on March 31, 2006 at 5:09 PM. Reason : .]

3/31/2006 5:08:51 PM

That $10K is an earnest money deposit to make sure youre serious and a ready, willing, & able buyer.

That said:

The fact taht you cannot view the home untill after the E$ has been posted is kinda sketch, and EVERY home buyer I've worked with gets their own pest insp.

VERY few RE transactions close inside of 30 days. That shit is almost unheard of.

The property disclosure will probably have "no representation" checked on all the things worthwhile, so youre gonna wanna check it out with a professional of your own.

The broker participation percentage is bullshit too. There is no such thing as a 'standard' commission. All NC commissions are required to be negotiable. That is, if "broker participation"=commission.

All things considered, RE auction laws are a little different from conventional RE sales, but this sounds like its already on the fringe of real estate brokering laws.

[Edited on March 31, 2006 at 5:16 PM. Reason : .]

3/31/2006 5:15:45 PM

LOOKS LIKE A SHIIIIIIIIIIIIIIITTTTTTTTTTTTTTTTTTT HOOOOOOOOOOOLLLLEEEEEEEEEE

3/31/2006 5:17:21 PM

Quote :

"That $10K is an earnest money deposit to make sure youre serious and a ready, willing, & able buyer."

True, but if it's being run like the other auction I've seen from AuctionFirst the auction winner will probably have to cough up 10%.

I don't know about this particular house, but here is a few lines from the bid package for the home they auctioned on Wickham:

Quote :

"All deposit checks must be in the form of cash, a cashier’s check or certified check. No personal, company, or third party checks will be accepted. Successful bidders will be required to place a deposit equal to the greater of: (1) 10% of the total purchase price of the Property or (2) the $24,000 minimum deposit at the conclusion of the sale at the time of signing the sales contract. The total deposit shall be applied to Buyer’s sums due at closing settlement. "

[Edited on March 31, 2006 at 5:24 PM. Reason : s]

3/31/2006 5:23:16 PM

816 is the fourth house on the left if you come in through Octavia and it's nothing but families in that part of the neighborhood. I babysat for the kids who lived in that house several years ago and the family moved closer to Combs Elementary school because they needed more space. The kitchen is -really- small and I don't know if they fixed that, like broke any walls or added space. Originally it was a 1 bath 2 bed (plus living, dining, and bedroom) so anything else is in the new part of the house. The driveway was paved a few years ago when a new owner acquired it so it shouldn't be a problem. The backyard was fully fenced in the 90s to keep a dog in, but the bordering fences have a few "holes" in them from kids who came through that yard when it was unoccupied to party on Brent Road covertly. There are lots of nice big trees all around the property so the house enjoys all the benefits of being in a semi-forested area. I haven't been in the house since the new additions and I don't know if the work was done well.

Several weeks ago there was a rash of break ins in the neighborhood. The burglars broke glass atrium doors and in one case, grabbed all the boxes for some people who were moving in. There was also a peeping tom in the neighborhood. PM me for details, but I won't say anything else about it here.

3/31/2006 5:28:17 PM

Most of the details of it are pretty common to real estate auctions. You don't really know much about the property until you get out there to look at it.

Most investors that buy properties at auction wont pay more than a certain percentage of what it would be worth on the market. This gives them a cushion for hidden problems with the property. The only thing you can do is research comparable sales beforehand, show up and look at it, and base your maximum bid accordingly.

This home actually has more information available to view than most auctions. They have a termite and home inspection on hand.

[Edited on March 31, 2006 at 5:29 PM. Reason : ]

3/31/2006 5:29:19 PM

Quote :

" Its kind of crazy to think of spending hundreds of thousands of dollars at auction format with only seconds to make a decision. I am gonna go watch it though, it should be interesting. It is far enough up Brent and away from the duplexes where it should sell."

My parents bought our house when I was 9 via auction. But, being from a small town, there wasn't anything "binding" about being able to bid. We just showed up. I think I remember them looking at it a day before but I'm not sure now. And yes, the bidding was quite crazy. After a couple of initial bids it was just my dad and the neighbor across the street. My dad knew what our limit was that my mom had set for us (she was the accountant). So when it was just my pops and the neighbor, when the auctioneer would come to my pops he wouldn't hesitate at all to ratchet the bid up. After about 3 times back and forth, each time the neighbor taking longer and longer to think about his bid, he gave up, I guess figuring that pops would go as high as needed to get the house as quickly as he was firing back bids. Fortunately for us, we had stopped right at our limit.

Then my mom almost passed out.

3/31/2006 5:36:33 PM

this is pretty funny. minimum bid starting at $180k. on brent rd.

i wouldnt spend more than 150k on any house anywhere near that street.

that place is trending down pretty fast

and none of the remod/additions have been reflected on the tax value either.



http://tinyurl.com/ln5y2

[Edited on March 31, 2006 at 5:49 PM. Reason : .]

3/31/2006 5:45:29 PM

^ For tax purposes, that's a good thing.

However, the fact that they aren't on the website makes me wonder if they got the proper building permits for the additions. That shouldn't be a problem for the buyer as long as they were done properly, but if it wasn't built up to code you could end up paying for a 2700 sq. ft. house and then having to tear down the additions (highly unlikely that it would come to that, but it's possible.) More reasons that this type of thing is sketch because once you win the auction you're pretty much stuck with it. You'd definately want to hire a good home inspector to even consider anything like this.

[Edited on March 31, 2006 at 5:58 PM. Reason : s]

3/31/2006 5:57:24 PM

the fact that they arent on the website means that I am about 99.99% sure that they didnt get ANY building permits.

troo

[Edited on March 31, 2006 at 7:02 PM. Reason : .]

3/31/2006 6:40:03 PM

^ Where do you see foreclosure? People actually choose to auction their home with this company.

3/31/2006 6:47:18 PM