Charlotte Area Real Estate Auctions

Search for Auction Listings | Types of Auctions | Agent's Role | Register for Auction Listings

Search for Auction Listings
The link above will provide you with an auto generated list of properties for sale through an auction member of the MLS. This list does not include court-ordered foreclosure sales. These properties are owned by the builder, bank, or owner and are utilizing an auction to move a home that has not sold otherwise.

Types of Real Estate Auctions
In real estate, there are a number different types of auctions. Below are just a few examples:

  • Foreclosure Auction
    • A foreclosure auction (otherwise known as a court-ordered sale) occurs when the owner of a parcel of real estate is in default and the lienholder has used the judicial system to force a sale of the property. These auctions are held at the local county court house and information on these types of sales can be found in your local law newspaper (in Charlotte, its the Mecklenburg Times) or in the local paper. Sites like RealtyTrac and Foreclosure.com offer to sell you this information for a monthly fee, however often it is not as accurate as you will find youself through the court house or through the public Notice of Defaults. Anyone may participate but there are a few catches that exclude many from ever participating:
      1. Unless the home is vacant and listed with a real estate agent, you do not have the right to visit the property for inspections, appraisals, etc. Doing so would be trespassing. This is a problem for a number of investors who are attempting to finance the home with a mortgage since the bank will require an appraisal and you don't have access to the property whatsoever.
      2. Your bid can be upset. Up to 10 days after the auction, any bidder can upset your bid by placing another bid 5% more than yours.
      3. You need a bank check for 5% of the final purchase price once the auction closes.
      4. The reserve is a amount of the secured interest that is foreclosing.
      5. You have only two weeks to close on the property once the upset period has passed.
      6. Once the property is closed, it is the responsibility of the new owner to evict the former owners.

      My recommendation for investors wanting to go this route is to team up with someone who is experienced with these types of sales for their first 5-10 purchases. Far too many casual investors have made a bad purchase or two at the court house and have been financially ruined as a result.

  • Private Sale Auction
    • Private Sale Auctions are held by owners, builders, and banks to sell a home or homes that have failed to sell traditionally. Today, they are being used by banks to liquidate their REO inventories and builders to move spec homes. While these auctions may feature homes that were foreclosed upon, this is not the same as a foreclosure auction. Here's a few details:
      1. The properties are available for inspection prior to the auction.
      2. There is a reserve but it is unknown to the buying public.
      3. Above and beyond the final sales price is a Buyer's Premium, which can be between 5-10% on top of the winning bid. So if the winning bid for a home was $100,000 and it had a 7% buyer's premium, the balance due would be $107,000.
      4. Typically, these properties are MLS listed (featured in our search for auction listings).
      5. You will need a bank check for 5% of the final price the day of the auction if you are the winning bidder.
      6. You must be registered to participate in the auction before the auction date.
      7. Buyers may inspect the properties before and sometimes after the sale.
      8. Buyers must be pre-approved for a mortgage without contingencies such has a home sale.
      9. Closing is expected to take place within 30-60 days from the auction sale.

The Role of your Agent in a Real Estate Auction
Much the same as a traditional sale, your real estate agent can advise you on values in the area, arrange for an inspection prior to the auction, arrange financing, etc much the same as occurs with a traditional sale.

Register for information on upcoming Real Estate Auctions throughout Charlotte