I helped somebody get OUT of a deal that they bought from REDC (ushomeauction) because they did not due as much diligence on the home they ended up buying at auction. My assistance was informal but after enough kicking and whining they did get their deposit back.
Actually some of those starting bids do not seem to bad. Whether that is what they will go for at auction is questionable. It would not hurt for you to check the auction out at the very least. Additionally if you are serious go to the auction site, pick the homes you want, drive out to the homes, and kick the tires… If you are really serious get ALL OF YOUR DILIGENCE DONE BEFORE the auction. If you are not sure what that diligence is, then call a local Realtor in Temecula or Murrieta and ask them to help you out and represent them. I believe that REDC will pay them a small commission.
The point is this… Yes it “appears” that if some of these homes actually do go for the starting bids then you may indeed do pretty well. Again though, I CANNOT STRESS how important it is for you to do ALL of your diligence before hand… inspections of all types, termite inspection, natural hazard and zone disclosure report, title check… Just get it done… You never know… you may do quite well… At least go to the auction and get a feel for it so when there is another one, AND THERE WILL BE… you will be used to the process..
Don’t forget that there is a 5% commission added on to the winning bid. Also make sure your financing selection is ALL COMPLETED before the auction.
Going to the auction is the easy part… getting serious and getting all the work done before hand is the hard part. It can be a great deal if you do all the work correctly.
