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#3432821 - 11/02/13 08:34 PM Real Estate Auction Question
pass-thru
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Registered: 10/10/04
Posts: 3628
Loc: va beach

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A farm I have trapped for several years went up for sale....forced by creditors. It is close to 700 acres, multiple buildings, houses etc. They tried to sell as one piece asking several million. No takers. This was with in the last 2 months. I just found out it is going to auction in 5 days. I guess the creditors are not fooling around. The website had the date time and location of the auction, that's about it. They are selling it off in 13 lots.

One of these lots his a beautiful piece of property. Between about 125 acres. With this auction coming up on short notice, I imagine there might be some deals to be had. I would like this piece of property. I would not be willing to pay more than 75% of the tax assessment. I imagine they are looking more than the tax assessment. But if there is not competition, who knows it could go for a bargain.

There is no way I can attend that auction. What would I do....call the selling agent and see what they say? Anybody ever bought land at auction? I know my cousing got a beautiful farm for a steal at an auction. Any advice appreciated.

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#3432835 - 11/02/13 08:40 PM Re: Real Estate Auction Question [Re: pass-thru]
smstone22
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Registered: 01/11/04
Posts: 16948
Loc: Allardt, TN

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A lot of them will let you bid over the phone. You just need to talk to the company. One place I bought at auction I couldn't go so I just sent a trusted person for me and gave them a amount to go up to. I have also bid numerous times on places for my Dad. Win the bid and get the money to them, that's all they generally care about. What you have to watch for when it is divided is that even though you may win a lot, most times they do right of combination. Add up the prices of all lots, and if someone bids over that amount then they win the whole place.
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#3432840 - 11/02/13 08:43 PM Re: Real Estate Auction Question [Re: smstone22]
redblood
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Registered: 01/22/06
Posts: 15319
Loc: Lewisburg

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is it an absolute auction?
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#3432846 - 11/02/13 08:48 PM Re: Real Estate Auction Question [Re: smstone22]
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Registered: 10/10/04
Posts: 3628
Loc: va beach

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 Originally Posted By: smstone22
A lot of them will let you bid over the phone. You just need to talk to the company. One place I bought at auction I couldn't go so I just sent a trusted person for me and gave them a amount to go up to. I have also bid numerous times on places for my Dad. Win the bid and get the money to them, that's all they generally care about. What you have to watch for when it is divided is that even though you may win a lot, most times they do right of combination. Add up the prices of all lots, and if someone bids over that amount then they win the whole place.


Do they make you prove funds before bidding?

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#3432848 - 11/02/13 08:49 PM Re: Real Estate Auction Question [Re: redblood]
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Registered: 10/10/04
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Loc: va beach

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 Originally Posted By: redblood
is it an absolute auction?


Not sure what that is?

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#3432987 - 11/02/13 10:35 PM Re: Real Estate Auction Question [Re: pass-thru]
redblood
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Registered: 01/22/06
Posts: 15319
Loc: Lewisburg

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absolute means that they cannot cancel the sell if the desired price is not reached.
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#3433006 - 11/02/13 10:53 PM Re: Real Estate Auction Question [Re: redblood]
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Loc: va beach

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 Originally Posted By: redblood
absolute means that they cannot cancel the sell if the desired price is not reached.


I don't know, doesn't say on the website. But I imagine if they can cover the lean on the property, it will go. I would be willing to pay that much. That's about 70% of tax value.

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#3433104 - 11/03/13 04:06 AM Re: Real Estate Auction Question [Re: pass-thru]
smstone22
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Registered: 01/11/04
Posts: 16948
Loc: Allardt, TN

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If it doesnt say absolute then it usually isnt. Ive never had anyone prove funds before bidding. You need to review their terms and just adhere to that. The last place my Dad bought at auction sold for 50% of the lien amount. The bank just lost the money, sometimes they are willing to do that if to much is owed, most banks dont want to hold property very long. Watch out for buyers premium too, most times its 10% added to final sale price, but if there is one it will be mentioned in the ad and at the auction.
_________________________
-QDM=Better Deer, Better Deer Hunting
-Let Him Go, So He Can Grow

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#3433141 - 11/03/13 06:05 AM Re: Real Estate Auction Question [Re: smstone22]
BlountArrow
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Registered: 07/13/12
Posts: 2788
Loc: SouthEast Tenn

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 Originally Posted By: smstone22
What you have to watch for when it is divided is that even though you may win a lot, most times they do right of combination. Add up the prices of all lots, and if someone bids over that amount then they win the whole place.


Exactly! I'd say this happens more often than not. When my grandfather auctioned his family's old dairy farm many years ago, which was a horribly stupid thing to do (long story), a real estate developer/builder bought a few of the tracts through the auction process. When all lots had been auctioned they then offered the combination up for auction and the builder that only won 2 lots ended up with 20+ lots. So no guarantees that because you're the high bidder you won't lose it in the end.
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#3433215 - 11/03/13 06:58 AM Re: Real Estate Auction Question [Re: BlountArrow]
smstone22
16 Point


Registered: 01/11/04
Posts: 16948
Loc: Allardt, TN

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 Originally Posted By: BlountArrow
 Originally Posted By: smstone22
What you have to watch for when it is divided is that even though you may win a lot, most times they do right of combination. Add up the prices of all lots, and if someone bids over that amount then they win the whole place.


Exactly! I'd say this happens more often than not. When my grandfather auctioned his family's old dairy farm many years ago, which was a horribly stupid thing to do (long story), a real estate developer/builder bought a few of the tracts through the auction process. When all lots had been auctioned they then offered the combination up for auction and the builder that only won 2 lots ended up with 20+ lots. So no guarantees that because you're the high bidder you won't lose it in the end.


Yep in my area usually things dont get lotted up at auction, its usually combined. It does happen though, my 85 acres was originally part of 320 prior to auction. One of the last auctions I went to had some 100 acre tracts as part of 300 acres...the 100 acre tracts were ending at around $40,000 or 400 per acre. When it was combined, a bidding war ensued and the place brought $900 an acre.
_________________________
-QDM=Better Deer, Better Deer Hunting
-Let Him Go, So He Can Grow

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