You know the drill. That new special someone comes flying into your life like Dale Earnhardt, Jr., taking the last turn at Daytona and just like that you morph into a love-sick moron. Sappy e-mails and texts, watching shows you’ve never heard of, opening car doors, daily showers and daydreaming ensues. Every broken heart you’ve suffered and restraining order you filed (or disregarded) seem like they never happened.

And then you find out that the love of your life has a few extra details they feel compelled to share.

A couple of kids? OK.
Still live with mom? Yeah, OK.
Escort? Huh?

Buying real estate at auction can be somewhat similar with disclosures that need to be made before the relationship between seller and high bidder can be consummated.

The question is can you handle the truth? Or the terms of sale?

When registering for auctions (online or in person), bidders are typically required to accept terms of sale. This CYA is in place to protect yourself and the seller … alerting everyone to what is expected before the exchange of deed can take place. But as with any legal document, don’t let all the “Hence to Forth …” sap your excitement. Just look up all the big words, read through everything carefully and fully understand how much skin you’re putting in the game.

For instance, during the Live & Absolute Home Auction taking place on June 20, all the properties are being sold by Williams & Williams (in partnership with the Auction Network) “As Is, Where Is” with no financing, approval or other gatekeepers between you and the sale. Confused? Let’s say you want a can of Diet Coke sitting on my desk. Feel free to make me an offer. I can’t guarantee that nobody passed by and spit in it, but then again, it may have just been opened and left there by someone else or it could be filled with mint silver dollars. Sure it’s a little risky, but you can’t pass “Go” and collect $200 in Monopoly without rolling the dice.

Since the majority of these 60 properties ended up in the auction following foreclosure procedures there will more often than not be additional taxes, unpaid utility bills, or other encumbrances associated with each property. These will need to be paid or settled by the high bidders either before a special warranty deed can be issued or after a quit claim deed is issued by the seller.

Prior to the auction of each property, the auctioneer will state the known disclosures that need attention. Keep in mind that W&W has used best efforts to identify all encumbrances for each property using good faith research, but can’t rule out that some tax lien isn’t sitting out there or that a homeowners association doesn’t still think they are owed $100 for a mowing bill that wasn’t paid years ago.

What if a home has a hefty tax bill? You’ll need to add that to the cost. But, remember many things can be negotiated especially these days. Check with the agency that holds the tax bill prior to closing. Perhaps the house’s appraised value declined significantly giving you the argument that the tax bill should be reduced proportionately. You’re the new owner, not the deadbeat who stiffed the bank and the tax office. Try to get them to work with you.

Or maybe the bill was actually paid and not removed from public record.

In advance of bidding on any property do your own research and due diligence.

Each property listed on auctionnetwork.com in the Live & Absolute Home Auction catalog has a link for “property details.” After clicking there, you will see additional images, estimated value calculator, time of auction, descriptions and a list of specific disclosures. Among the disclosures will be any of the encumbrances Williams & Williams were able to verify. Add those debts to what you’re willing to pay, plus estimated costs for repairs. Then compare that total to some of the area comps for similar homes and rent prices in the neighborhood. This should not only provide you some reasonable expectation in terms of the total outlay, but also give you a solid blueprint on which you can fulfill your goal at the auction.

Live & Absolute Home Auction

When: June 20, 2009
Where: Tulsa, Okla.
Auction Time: 3pE/2pC
What's The Deal?: Over 60 homes will be sold absolute without reserve to the highest bidders during a live, televised auction conducted by Auction Network in partnership with Williams & Williams. Interested buyers from around the globe can bid in person, online or over the telephone on single family homes in Florida, Georgia, Indiana, Michigan, Pennsylvania, Oklahoma and many other states across America. The live event coverage will be broadcast nationally on ION Television Network on Dish Network Ch. 217 and DIRECTV Ch. 347 and on Golden Eagle Broadcasting (GEB) locally (in Tulsa) on KGEB 53, Cox Cable 23 and online at auctionnetwork.com. Buyers planning to bid remotely via the Internet are encouraged to pre-register at auctionnetwork.com. Bids can also be placed over the telephone during the live event by calling 1.866.231.8011. The Live Absolute Home Auctions event presented by Auction Network and Williams & Williams will also take place in front of a live audience at the Golden Eagle Broadcast Center located at 81st and Lewis in Tulsa, Okla. Doors will open at 1p CDT and interested bidders should register on site 30 minutes prior to the start of the auctions. Registration is free.
Register: Click here
View Catalog: Click here