As the big REDC Real Estate Auction approaches us on Feb 27th, 2011, at 9:30AM in downtown Fort Myers, FL. at the Harborside Event Center, I wanted to take a few minutes to offer up my experience with buying from auctions.

I previously purchased a Saltwater Lot (Gulf Access) in Cape Coral, FL. a few years ago from Williams & Williams Auction for $25,500, which I re-sold about a week later for $40,000, I believe that lot was listed on the local MLS back then for $64,900 or something close to that and had expired, so I knew the seller (Indymac, which is now OneWest Bank) was eager to get it off of their books.  I arrived at the auction site early and waited patiently until this property was being auctioned, then finally it was "go time".  At first there were 4 bidders on this property, as the price grew, 2 of the bidders backed out, leaving me and another investors.  I had already done my homework heading into this auction and was prepared to pay no more then $25,000.  I knew by reading the other investor, he had reached his limit, as I did ($25,000), I could see the pain in his eye saying "don't bid again, don't bid again", so I did, then he congratulated me.  Sure, I paid $500 more then was I wanting to heading into the auction, but sometimes you have to go with your gut by reading the other investors who you are competing against.

I just purchased a Freshwater Lot in Cape Coral, FL. via an On-Line Auction held at RealtyBid.com  This lot was listed on the local MLS for $10,900.  I did a search for "real estate auctions" and came across RealtyBid.com.  I had heard about this before but I couldn't even remember if I actually visited the site or searched for properties on it, so i looked at what SW. Florida had for sale on their site and came across two Freshwater Lots in Cape Coral.

I did my research on both lots, the other one was way up in the NW part of Cape Coral, and the one I ended up winning/highest bidder was a block north of Pine Island Road, much better location.  Most auction companies have a Buyers Premium or Flat Fee Commission attached to each property auction, some are as high as 10%, most around 5%, but this particular Fee was $500.  So, I factored with closing costs, bid price and $500 Fee to RealtyBid.com, My highest and best offer was $5,000.

Much to my surprise, I was the high bidder for the lot I wanted the most.  At that point, I got an email from RealtyBid.com stating I was the high bidder, but the seller is still accpeting offers for the next 7 days, as a post-auction bidding program", sounds like BS to me, but whatever.  Day 6 of the 7 days post auction bidding, I got a new email from RealtyBid.com stating the seller has countered my $5,000 to $6,000 as they stated they had a reserve set at $6,500.  I told RealtyBid.com that since I have an active real estate license, instead of me paying another penny above $5,000, that I would concede my $175 real estate commission back to the seller at closing, increasing my offer by $175, without it really costing me a penny out of my own pocket.  Seller accepted, we closed last week,

This Freshwater Lot is For Sale, I will even offer Owner Financing w/ 20% Down, 10% Interest, 2 Yr Balloon, Monthly Payments at $253/Per Month at $14,900.  Or buy it outright for $9,990.