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Alan K
Member
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# Posted: 23 Nov 2014 12:36pm
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Hi Forum Members,
Was wondering if anyone on here has gone the following route.
Land Auctions:
Came across a website (won't mention site) . It's a BBB accredited company, so I guess that's a plus.
They have pictures and descriptions of the properties. Nothing owed on the properties (back taxes and the like).
Basics of the Auction:
1) Winning Bid - Enters you into Binding agreement to Buy.
2) Winning Bid is deducted from Purchase Price.
My thought is: Is it practical to buy basically, A blind piece of property?
Has anyone tried this avenue? Was it worth it?
Thanks
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turkeyhunter
Member
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# Posted: 23 Nov 2014 01:29pm
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I would not "BUY A PIG IN A SACK"...so to speak
I would have to look at it.
I drove 2years ago 29 hours straight!!! to look at a cabin in Maine it was beautiful on pics...when I finally got there I almost did not get out of the truck. IT was behind a guardrail in a curve on a busy highway that hauls logs out of Canada...if the real estate agent had sent me the pic how close it was to the road. I would been in recliner at home!!!! 
I have a friend who has bought 2 camps I looked at ( and did not buy) and he bought them both sight unseen ~~BUT he knows what I like and I know what he likes....
one was 3 hours away and one was 28 hours away....him and his wife love both places. I found both cabins/camps on Craigslist.
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Alan K
Member
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# Posted: 23 Nov 2014 05:09pm
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Thanks for the Feedback TH,
I was trying to get a grip on the concept, and was having a hard time with it.... Started thinking... If there's so many properties and bidders, why I'm not seeing the logic.
Most of the properties are mapped, dimensions and what-not. Site claims "On-Site" pictures. If true, they are some nice properties.
Think the difference between your situation and mine.... You were looking at a property w/ a structure?
My case: I want to start w/ "Raw" land and go from there. Not saying there really is a difference.
Alan
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adakseabee
Member
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# Posted: 23 Nov 2014 09:13pm
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Alan, be careful. In my local newspaper today, there was a story of a fellow who owned two $400,000 oceanfront lots that were sold by a con man for less than $200,000 each to others without the owner's knowledge. Cost the true owner over $100,000 in legal fees to get the two properties back. Whenever you buy real estate, be certain to get title insurance. Check, also with taxing authority if the property taxes are paid to date. Personally, I would not buy real estate from afar by auction. Do your due diligence before you commit. As they say, "Let the buyer beware".
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Alan K
Member
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# Posted: 23 Nov 2014 10:28pm
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Hi ada,
Thanks for the feedback, went looking at the site in question
Found this paragraph.... Not that it matters.
This Parcel is within a Legal Recorded Subdivision or Plat.
This Parcel may be subject to Protective Covenants.
Title insurance is available on all Parcels.
We Guarantee a free and clear Title!
I still have enough of a window to scrutinize this site.
Thanks
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fasenuff
Member
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# Posted: 24 Nov 2014 12:08pm
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pictures of the land always help sell it but if you were selling property by pictures would you be sure to show the best pictures and not the ones that show it is on the side of a steep mountain or in the low spot of a swamp? I would get on google maps and find the property and look at it both in satellite mode and map mode to get the lay of the land. nice to know if the land can even be stood on without the help of climbing gear......
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bobrok
Member
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# Posted: 24 Nov 2014 12:42pm - Edited by: bobrok
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Also, check with the local county clerk (that's what they're called here in NY, could go by another name elsewhere).
You can view and likely purchase a tax map of the area to better help you research ownership, legal boundaries, neighboring parcels/ownership, etc.
I once looked at 50 acres that was landlocked with no access; pretty worthless IMO.
USGS topographic maps will tell you pretty quickly how you lay on elevation relative to adjoining lands. You can download these.
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Littlecooner
Member
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# Posted: 26 Nov 2014 06:49pm
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"Winning bid is deducted from purchase price"??????
If the winning bid IS NOT the purchase price, then you need to run as far away from these shisters as fast as possible!! Something stinks here with that comment. Also Google Earth is a super tool for inspecting possible real estate purchases. Most counties east of the Mississippi have the tax records,maps and aeria photos on line under that counties " GIS". You can see subject property and all adjoiners, telling you what they consider fair market value and the size and value of all improvements next door or in the neighborhood. Local auctions where you stand in the audience and bid can be a great way to buy real estate. Anything you buy before your "boots on the ground" inspection will be a big disappointment to you 98% of the time.
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Nirky
Member
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# Posted: 27 Nov 2014 12:46am
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Quoting: Littlecooner "Winning bid is deducted from purchase price"?????? If the winning bid IS NOT the purchase price, then you need to run as far away from these shisters as fast as possible!!
This is not of itself a scam in any way, this simply means that the price of the parcel is fixed and should be clearly stated in the auction. The auction is simply who wants the land the most as reflected in their bid, which serves as their down payment.
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Alan K
Member
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# Posted: 27 Nov 2014 10:22am
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Hi Nirky,
Yes, the land that caught my eye was 5 acres in NM.
Bid started at $300.00 for "right to buy".
Acreage was listed at $9,900.
So, If the winning bid was $900.00, Just for math purposes.
Amount due after auction would be $9,000.
I appreciate Everyones feedback.
If it's so bad, as Most posts on here tend to lean on this question. I'm wondering "How a business does it for 35 years, Better Business Bureau (accredited).
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bobrok
Member
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# Posted: 27 Nov 2014 01:34pm
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^
This is correct. I've seen it before.
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Littlecooner
Member
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# Posted: 27 Nov 2014 06:43pm
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Alan K I am confused here. If the listing price is $9,900 and you have to pay that price no matter what you bid. Then how can you classify this as an auction? I say this stinks. That's my opinion. Have attended a lot of true land auctions and even helped run a few in my lifetime. Something is wrong here if this is the only way they cane sell this tract. Buyer beware. I personally would not participate in this under any conditions. Call it what you want to, but this is not an auction in my opinion.
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Alan K
Member
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# Posted: 28 Nov 2014 11:49pm
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Hi Cooner,
This is why I'm asking questions. Some take the "Good" stance, figuring all you have to do is be "High Bidder" and your basically the owner, yeah, you still pay the $$$ less the winning bid. But I get your point to, "Not a True auction". If you're still paying a fixed price.
That's why I'm enjoying the answers, 10 people, 10 different views on "WhyTo" and "Why Not".
Take Care
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Littlecooner
Member
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# Posted: 29 Nov 2014 03:29am
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I see you are looking for land in NM. I bought a 6 acre parcel in CO about 15 miles north of the NM border and a quarter mile from the Rio Grande River about 6-7 years ago. Bought it without any "boots on the ground" from some guy advertising in one of my local trade papers (he was local to me). When I went to inspect my purchase, it was a learning curve. I knew quite a bit about my lot, but the remoteness was a little shocking. I am in a subdivision on a county maintained road about a mile from a main state highway. The old easterner boy did not expect what he found. It looks like its probably 5 miles to the nearest electric pole and it is 3-4 miles to the closest man made structure. I spent a few days camping and enjoyed watching the wild horses come by each morning.
Not sure why NM is you choice, but snoop around Costilla County,Co on the net. It is Off the beaten path in the San Luis Valley high arid desert at as my property is at 7800 feet. Several 14,000 ft peaks can be seen from places. It may fit your criteria because you will be alone with the wild horses and coyotes.
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CSwail
Member
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# Posted: 2 Dec 2014 05:15pm
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Littlecooner - we love that area.
Similar pricing and scenery can be had up in Park County, Colorado. (And lots of land auction activity up there, too) If you can get out and look at the lots, great. But also so many of them are just treeless open expanses, some with a hill, some with a rock. But when you get into lower priced parcels most of them are the same. If you can't get there in person, do the next best thing, Google Earth.
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CSwail
Member
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# Posted: 2 Dec 2014 05:26pm
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Also, wanted to add, if you find an area you like, you are better off searching the websites of the real estate agencies for that county. Don't bother with Zillow, you have to try the smaller local outfits. And Craigslist is always a good source, too. Though you are expected to do the due diligence and make sure the property is legit.
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