Auction Homes & Real Estate- Boise & SW Idaho
Updated 11/10/17 This week, there are 6 properties in SW Idaho listed by Realtors and for sale by auction.
CLICK HERE For MLS Listings on Upcoming Auctions.
FYI- There is an agent-only set of remarks on MLS listings, often with more auction terms and information. Ask me for the whole story on any of these properties and how each auction works. Some will take pre-auction offers also.
Be Advised- Buying homes and real estate at live or internet auctions can expose you to risks not present in a typical purchase, and may best suit experienced cash buyers- see below. There are even higher risk types of auctions than these, which I don't track here, such as trustee sale foreclosure auctions held at title companies or courthouse steps tax sales.
Absolute or Undisclosed Minimum? There are many variations on live real estate auctions. Absolute means it will be sold regardless of price. Some auctions have set minimums disclosed in advance. Others have an undisclosed minimum, sometimes called a reserve- this means you could win the live auction, but not get the property because the winning bid is below what the seller will accept.
Pennies on the Dollar?
Some auctions are listed at a zero price, but don't be fooled. The housing market in Idaho is just too strong and housing supply too tight to expect to steal a property for much less than market value. There is no shortage of investors with cash to compete against for a super buy. Never say never, but I would say not likely that a "pennies on the dollar" buy is possible in the Boise metro area at this time. A home needing major rehab or serious issues resolved might be the exception.
Buyer's Premium Explained. Most live real estate auctions require the winning bidder to deposit 5% non-refundable earnest money upon winning. This 5% is added to the live bid price. For example, you bid $100,000 and the auctioneer says "Sold!" Then the buyer's premium is added and the actual sale price is $105,000. A wise bidder calculates this in advance to know their maximum live bid before the excitement starts.
Pros/cons of buying real estate at auctions:
- Bargains! A great bargain outweighs all other considerations and you can't get one unless you are there, informed and prepared.
- Fast Process. A small window to bid only for attendees can reduce your competition. No waiting for a seller to answer. And most auctions require you to close quickly in 30-45 days.
- High-pressure Atmosphere. The ideal situation for a buyer is to have no competing offers for maximum bargaining power. Auctions encourage emotional heat-of-the-moment competition and reduce your bargaining power.
- More Money At Risk. Auctions typically require a large non-refundable deposit with no contingencies or "escape" clauses, while most normal purchases require only $1,000 earnest money, usually refundable if you find major hidden defects or financing falls through.
- Higher Risk For Buyers Getting Loans. The property must also qualify for your loan. If the appraisal comes in low or any repairs are required or you fail to qualify, you may lose your larger than normal deposit without the protection of a financing contingency. For this reason, as-is auctions are best-suited for cash buyers.
- Highly Advertised. Don't expect to be the only one there. Most live real estate auctions are advertised months in advance. Many are listed in the MLS with a zero price, increasing exposure to buyers in all price ranges.
Who Is On Your Side? Not the auctioneer. The way agency works in Idaho, the listing agent can not fully represent you because they already work for the seller. Luckily, most auctions include a fee for a buyer's agent to represent you. Under Idaho law, your agent is required to disclose adverse material facts, work only in your best interest, perform the terms of your contract, account for all monies, keep everything confidential and protect you every step of the way.
Not all auction homes and real estate are listed for sale by Realtors in the MLS. The rest will likely be found on the websites of the following auctioneers:
auction.com Live and internet auctions for homes and real estate nationwide.
corbettauctions.com My favorite local auctioneer- very professional. Live auctions for local homes and real estate, storage liquidations, personal property, business equipment, estates, benefits and fund-raisers.
downsauction.com Live auctions for local homes and real estate, moving sales, estate sales.
musickauction.com Live auctions for Idaho homes and real estate.
williamsauction.com Live and internet auctions for homes and real estate nationwide.
HUD Homes are also sold by auction via closed bids. HUD gives home buyers priority over investors, will pay closing costs, and are priced to sell quickly. HUD bids include inspection and financing contingencies and smaller deposits.
Call me (208)866-3481 for more information and professional help on real estate auctions in Ada and Canyon counties including Boise, Meridian, Eagle Star, Kuna, Nampa, Caldwell, Middleton and smaller outlying cities.
Not just an agent, Dan Rowe is a licensed real estate broker in the state of Idaho and Realtor in good standing since 1991 holding the following designations: Accredited Buyer's Representative, Certified Residential Specialist and Graduate of Realtor Institute.