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how to find if an auctioned house isn't trashed and has back taxes owed that cost more than the house itself? Is there a "kelley blue book" for houses? So I know if the title is clean and not salvaged (as some cars are known to have a salvaged title, not sure if houses follow the same ways). Should I google the tax and land assessment on the house to find out the gist of the house? While I did see the house from the windows and it looks fine on the surface but I'd be curious if the mechanics of it are working (pipes, drain, sewage, water, electricity, etc.). Electricity I know works because the light is always on the porch so that way no one would break in the house knowing it looks empty.
No such thing. You can search many public records online now. What you can search varies throughout the country. A title company will search the title if you should purchase the property. There are disclosures available when one views the house. These disclosures vary (based on the seller or bank). Sometimes they simply say "do not know." Other times a bank or HUD will have a house inspected. With this type of property, assuming it's a foreclosure, it's always buyer beware.
The only way you can know for certain about the mechanicals are to have an independent inspection. Sometimes this can be done before an offer is made. In some instances one must have an accepted offer before inspections.
Having a title company do a title search will uncover liens
You would need an independent inspection to check out the house. You can also ask your insurance agent to see if there have been ins claims made on the house, but you have no way of knowing if the money was actually applied to repairs.
how to find if an auctioned house isn't trashed and has back taxes owed that cost more than the house itself? Is there a "kelley blue book" for houses? So I know if the title is clean and not salvaged (as some cars are known to have a salvaged title, not sure if houses follow the same ways). Should I google the tax and land assessment on the house to find out the gist of the house? While I did see the house from the windows and it looks fine on the surface but I'd be curious if the mechanics of it are working (pipes, drain, sewage, water, electricity, etc.). Electricity I know works because the light is always on the porch so that way no one would break in the house knowing it looks empty.
Kelly Blue Book does not have info on titles of vehicles, it's about the price. Homes can't have such a book because a $100K home in Alabama would cost $1 million in Beverly Hills.
As far as the plumbing just cross your fingers and hope for the best. if there is a major problem it can be 10s of thousands to dig up old plumbing lines and reconnect to the city water. Just because a light works outside does not mean the electric is fine, perhaps when all of it is on it shorts out, or when you turn on the boiler or AC units the power does not work or perhaps large outlets like for the stove if it's electric does not work, or if it's an older home certain rooms electricity may not work.
Nope, sorry, it would be nice -- but, no. There's no "salvage" title for homes. That's what inspections are for.
Sometimes, with HUD homes, there'll be a form in the package that describes any issues -- plumbing, HVAC, appliances, etc. But otherwise, it's a crap-shoot on a lot of the auction homes. The high end homes (multi-million) tend to be in good shape, with disclosures, inspections, etc. But not the run-of-the-mill homes.
Your Real Estate agent can tell you the sales history of the home, whether it has foreclosed, changed hands, and what prices it sold for at each of those junctures. You can tell if the home has been flipped and for how much... Often times, with pictures. Much of those records are public, but they can be a bit daunting to wade through if you're not well versed in searching and interpreting them. So... ask a good realtor!
If the property has gone through a proper judicial foreclosure process, and there is an auction (or "Sheriff's sale), the liens should be extinguished through that process to preserve clear title on that piece of land. If this is some kind of auction that is not overseen by the courts, though, then yes, you would have to search the county records or have a title company do so to see what liens, if any, may exist against the property.
As far as the condition of the home, and things like electrical, plumbing, etc., well, you just have to cross your fingers and hope for the best. Sometimes there is an opportunity for potential buyers to look at the property, including the inside, although even that could leave plenty of things that could be wrong undiscovered. In many instances, though, the best you can do is look at the property from the outside, doing your best to sneak a peek through the windows.
Real estate investing is not for the weak or ill-informed. There are plenty of very real risks that can wipe out a novice investor. Getting a house up to its maximum value can often be significantly more expensive than it initially appears. Don't do it if you can't afford to lose quite a bit of money.
If you want a good idea of what a house is worth, look at "comps"(comparable sales) or pay a licensed appraiser.
Never listen to these sources: Tax assessments, zEstimate, or any real estate agent. All three are all over the map. Tax assessments are usually way low. zEstimates are pure T junk, and a real estate agent will tell you a house is worth way more than it is.
Real Estate agents make no money overpricing properties, you know.
We only get paid when things actually sell.
Just sayin.
And get paid more when the selling price is higher, even if representing the buyer. "Just sayin."
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