Iowa Sheriff

How does a real estate sheriff sale work and what are my chances of actually winning a bid?

I have seen a piece of property nearby that I would like to bid on in an upcoming sheriff sale but I need to get educated on just what to expect and what type of competition will I see once I get there

Public Comments

1. You won't really know until you get there. No way to know how many people will show up and what they will bid. I suggest researching comparable values and what comparable properties have sold for. Determine the maximum amount you are willing/able to pay (and keep your fingers crossed)
2. Run all of the comps and try to find out what the reserve is. There is always a reserve price. Have 10% CASH on hand and documentation that you can get a loan for the rest within 30 days. You will not have longer then 30 days. The rest of it is hard to advise you on, you may be the sole bidder, they might be 10. It does happen VERY fast though, so be on our toes. Rule #1, decide your top price and do NOT go over it. The banks may send a shrill to drive the price up.
3. It's a shill, not a shrill - shilling is having an insider at the auction bid to raise the price. Anyhoo - there are many experienced investors that attend these auctions if it appears there is a deal to be had. So be prepared to go against some pros. Do your homework, find out what comparable properties are *selling* for and set your price. Do not get caught up in the moment and outbid what you said you would spend. If it is like most auctions, you will be issued a number. You will be asked if you have at least 10% cash deposit or a bank guarantee letter to write a check. Then you will need another guarantee letter stating you can obtain financing within a set amount of time, typically between 20 - 30 days. They don't play around at the sheriff's auctions, so have your documentation and pay attention to everything that is going on. Go early and ask your questions before the auction starts, because the staff aren't going to have any patience with you once the disclaimers start being read.
4. Just so you know, the full payment date varies. In texas you have TWO HOURS AFTER THE AUCTION to get a cashiers check from a local bank for the exact amount
5. depends on what state you are in and local rules. Here in my area the sheriff sale on the courthouse steps are just a way for the lender to bid to recover the deed for the property without going into the court system and any money they bid is "fake".