I just came across a notice of Bailiff auction in my neighbourhood.
I found out that gegistering to this auction is done only at the spot and bidders are not allowed to enter into property for inspection. While this sounds like an opportunity to have less interested buyers or bidders, at the same time lots of unknown risks.
Has any fellow members gone through the process of buying a property through Bailiff auctions, do we really get any bargain on such auctions?
This will one hundred percent not end well for you
Why's that?
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links?
Check if its a vacant property otherwise you could be up for an eviction battle with the current residents.
I tried contacting them, unfortunately they are not disclosing any information. Any available information will be made public only on the day of auction.
If a Bailiff is selling it, it's guaranteed to be sold as vacant possession (tenants).
no different than abandoned car auctions
caveat emptor
pc English: rtfm with the m being auction conditions.
If the bailiff guarantees that no other security interests are registered. You can check for $2 on the ppsr website
for repairs get a trade card from the hardware store….
Investors consider every property as possible investments. Good chance of overpaying for a lemon that needs tearing down or extensive renovation.
These sorts of property's are generally more suited to people who can either do the renovation themselves or are in the business of flipping property and have a team of people.
Maybe there is an exemption that I am missing, but the Conveyancing Act in NSW requires a vendor of a property to have a 'marketing contract' available for inspection when they offer a property for sale, otherwise they are guilty of an offence.
There are some limited exceptions under the regs, but can't see a court/bailiff sale on that list, and it specifically states that the requirement binds the Crown.
This discussion seems relevant, though no one offers hard answers https://www.propertyinvesting.com/topic/4381706-bailiff-auct…
bidders are not allowed to enter into property for inspection
Is it condemned?
Nah that's a standard condition for Bailiff auction's. I know what you're thinking. Everybody thinks it. But 'em the rules.
You can walk up and inspect like you would any abandoned house provided you keep it legal.
I purchased a foreclosure Auction. It involves more risks as you are required to go unconditional on the spot so if your financing isn't solid you can be out your deposit. You also dont get to have conditions/building inspections etc.
I only accepted the risk on my place because it is a double brick construction. The way the place is built means no structural rot if there is water damage. Still scary going unconditional without a proper inspection.
As a rule, assume the place needs a tear-down renovation, like they were making meth in there & its seeped into the walls. Take the assumed value, take the cost of doing that reno off the value & that is your maximum bid. That way the worst position you end up in is breaking even with buying the place at a regular auction.
Can't agree more. In addition to that there may be encumbrances associated to the properties. Did you manage to get those details?
you can do a title search. It will be clear title but there could be utility encumbrances etc. However, as it already has a houses on it, these are unlikely to be particularly significant. But still worth a look
I would only buy it if you intended to tear it down and that there might be toxic things like asbestos to be disposed of.
Might want to get to know these guys.
https://methlabs.com.au/
Is it possible to ask if there are any known toxic substances in the house before you purchase?
Hell, if it's say 15-20% below market then why not. Just factor in the possibility that you may end up with an asbestos laden crack den.
whats market value for an asbestos laden crack den - so I can figure out if its 20% under that?
Depends how much you value crack?
Went to a seizure sale not long ago in Adelaide. Tends to work slightly differently here. House was a meth lab seized during one of the big Operations.
Not only would you habe to tear it down and remediate the land but youve got to deal with scumbags coming past later.
For that place, it sold around $150k under market value and is having to sit fallow while it gets sorted.
Not saying dont do it, but it's caveat emptor.
Damn!! can't imagine to get into the mess
youve got to deal with scumbags coming past later.
Just start up your own meth lab and you've got an instant customer base.
/$
We've had one standard sale, and one rental, where we had the cops turning up at the door looking for previous owners. I can't imagine the people on the doorstep if the place had drug dealers previously in residence.
I would read up about the process in your state.
It may not a great deal as they will be looking to collect a fair price for the property regardless.