Any advice on biding on a house for auction by a builder? What do bids normally start at/ around?

nice neighborhood. builder is auctioning multiple properties. i believe is in trouble financially because no houses are selling now.Any advice on biding on a house for auction by a builder? What do bids normally start at/ around?
Before even deciding on a price I would want to know if the local zoning authority had already issued a CofA (certificate of occupancy). That means the house is safe to inhabit. You won't be able to move in without one. I would also want to know if these houses are fully complete or as is. This really would influence what I would bid.





How much is not knowing if your builder would be in business in 6 months be worth (as a discount). Can you get a home inspection before the auction? Walk-through? Anything?





I would be a little leery, but certainly curious.





good luck!Any advice on biding on a house for auction by a builder? What do bids normally start at/ around?
Let the buyer beware, do you suppose he may have cut corners because he's running out of money?


It doesn't matter what kind of ';guarantee'; he gives you if he goes BK.
Usually the auction sets the open bid. It is the min amount they want for the property. If two people want it, then the bid price starts going up. Properties do not sell well on private auctions, because these auctions are set for profit and rarely do they ask for a bare price or do they sell at cost with non-profit.
In real estate there are essentially two types of auctions; an auction with a reserve and an absolute auction. An absolute auction is one that the highest bidder wins regardless of the price (don't for get to add the buyers premium). An auction with reserve means that the seller has a minimum price he/she must get for the property to sell and if the bids don't reach that price, nothing is sold at the end of the auction.





Auctions, by design, do not set prices such that there is no such thing as a wrong opening bid! The auctioneer may spit out a number to start with but until someone in the crowd improves upon it, the number is meaningless.