to the property.
After You Win At Auction, The Property Could Revert To The Previous Owners Even if you win at auction, you can still lose the house. If the owner is suddenly able to bring their mortgage current, work out a forbearance plan with the lender, or negotiate a short sale, you will walk away empty handed. Until you receive the title with your name on it, which usually takes about 10 days after the auction ends, you have no guarantees. How Much Should I Bid? Here’s where your knowledge of the local real estate market and home renovation costs will make or break you as a bargain hunter. As a general rule, you’ll want to know the value of a well- maintained home in the area where you are looking to buy. An Example Let’s assume that you are looking for a 3-bedroom house in an area where well-maintained homes with 3 bedrooms sell for $250,000. Let’s also assume that repairs to bring it up to the well- maintained standard will cost no more than $50,000. Finally, let’s assume that there are no liens aside from the primary mortgage. Note that these are all huge assumptions, made for the purpose of this example only, that you should not make in the real world. If you can buy that house at $200,000 (in cash), you’ll break even, because after the repairs, you could sell it for $250,000, assuming, and it’s a risky assumption, that the market doesn’t take a downturn in the interim. Keep in mind, that with $200,000 in cash at your disposal, you have several other, less risky options available to you.
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