I often hear people talk about the great deals they or their friends are getting at the auction on the Courthouse steps. Although there are some tremendous deals to be found at the auction there are more risks involved then purchasing directly from the bank, short sale, or traditional sale. Below is an outline which will walk you through the entire process and hopefully clear up any misconceptions.
Disadvantages to buying homes at the courthouse steps:
- You have to pay cash for the home within 24 hours
- No ability to see inside of home usually (very rare cases where you can get in touch with the previous owners before bank re-key’s property and walk the inside of the home)
- No ability to perform a home inspection before you buy (water and electricity normally off)
- Many times the banks can delay or remove homes from the auction so auction properties are never a sure thing and can lead to a frustrating and time consuming process
- It is a coin flip as to whether you got a good deal or not at the auction because one major and unforseen repair could make buying at the auction a losing situation
My suggestion is to keep looking for bank owned and shortsale properties through the MLS.
Below is a link to all current bank owned and short sale homes for sale in the Maricopa and Pinal Counties:
Bank Owned Homes For Sale - As of 9/14/2011 there are over 3,000 bank owned homes
Short Sale Homes For Sale – as of 9/14/2011 there are over 10,000 short sale homes
If you want to play your luck at the auction then click on the links below for a FREE LIST of auction properties coming up for sale in the Valley of the Sun.
I have organized the excel sheet in alphabetical order by subdivision and by most recent auction date. There are several other ways to organize and sort through them using the following criteria:
Legal Description (Subdivision)
Property Zip Code
Original Mortgage Balance
Scheduled Auction Date
Scheduled Auction Time
Has Pool (Y/N)
Full Cash Value
Call 480-363-2019 or email email@example.com the addresses of properties you would like for us to research more in depth and our team can give you a free estimate of the value of the property and determine a good bid threshold to establish when we go to the auction.
The process for buying at the auction is as follows:
- Determine which property(s) you are interested in bidding on and set a maximum bid threshold
- We will contact a local title company we work with to ask them to do the intial title work to make sure there are no liens on the property you are bidding on. There is a small fee for this service from the title company.
- Give a $10,000 cashier’s check to Keith Jackson Realty before the scheduled auction date (we like to get this at least a week before so we are not scrambling around the day before the auction). We don’t cash this we just hold on to it until a winning bid is accepted.
- A member of the Keith Jackson Realty team will attend the courthouse steps the day of the auction and you can either attend in person with one of us or as we recommend just communicate by phone with us during the process so you don’t emotionally attached to a property in the heat of the bidding and overbid on any one property.
- Within 24 hours of the accepted bid we require that you provide the remaining balance via wire transfer to finalize the bid. If winning bidder is unable to perform then they keep the $10,000 cashier’s check so in order to avoid any miscommunications we require that the client provide a proof of funds form from your bank to make sure there is enough cash to be able to close within 24 hours.
There are some incredible buys now regardless of if you are buying at the auction or not. Contact a member of the Keith Jackson Realty Team today at 480-363-2019 to discuss your next sale or purchase of Arizona real estate.