Hubby and I hit our first real estate auction in the County of Kings earlier this week. We know folks who’ve bought at auction before, but we were always suckers for paying market value.
So, here’s the rundown. The auctions of real property are run by the Public Administrator of Kings County. Go to the government website to see when the next auction is and which properties are listed. There’s a preview the weekend prior to bidding, or at least that was the case with the June auction.
If you want to bid you’ll need a certified or bank check for 10% of the opening bid. Bring a blank check to pay the rest of the deposit because chances are the opening bid is not the final price. If you win the bidding that means you go into contract immediately. This is NOT contingent upon inspection or mortgage. You must have all of your little ducks in a row before bidding or else you stand to lose your deposit. No joke.
Auctions are not for the faint of heart. It’s a risky business and you may be bidding against investors and developers whom have been around the corner before. Know what you’re getting yourself into….
You may inherit tenants. The property may even be an SRO. The two places we looked at in Bed Stuy had senior women living there for 30-40 years. Who wants to kick them out? Not me!
Who knows what’s up with the previous owner? Some of these are estate sales of folks who didn’t have wills. Family members sometimes expect something. I’m sure they chill once the property is sold, but I’ve heard some crazy stories about what happens leading up to the auction.
Take your time with the previews because you don’t get an inspection. If you don’t know what you’re looking at, it might be a wise choice to hire an inspector for the day of previews. Or a contractor or architect. Or a friend who knows something about houses. This will cost a good few hundred bucks (not the friend-buy them pizza) so be sure you’re serious about bidding.
If you end up buying at auction, don’t expect the place to be broom swept. The city and the tenants will probably leave a bunch of crap behind. I’d also imagine it’s a safe bet to go the legal renovation route by filing with the DOB as the city will know you just purchased a fixer upper. Am I being paranoid? I dunno.
So, why do it? Here’s a partial list of properties and what they sold for.
582 Bainbridge St. Sort of east Bed Stuy/Ocean Hill/Bushwick. Opening bid: $290k. Sold: $300k
163A Halsey St. Bed Stuy, right around the corner from moi! House needed updating and restoration but had some fabulous detail! Partial SRO status was a bit off putting. Opening bid: $325k. Sold: $400k.
2633 Hubbard St. Sheepshead Bay single family. Opening bid: $300k. Sold: $390k.
1130 Brighton Beach Ave. 1 BR coop apartment. I really wanted to preview this one because the opening bid was $65k, but we just couldn’t make it out to Brighton over the weekend. It ended up selling for $130k. A studio coop apartment on Brighton 1st went for $155k. That was a more modern building (1960’s/70’s?). A 1BR in Bay Ridge didn’t sell at $180k. With coops, you have to deal with the board and then there may be flip taxes and transfer fees.
174 Lincoln Place. Opening bid: $1.75. Sold: $ 2.675. The highest priced “sold” property of the day. An Albee Square property that was going for $3.6 did not sell. Oooh, there were lots of bidders on this prime Slope mixed use building! Four ground floor commercial units and up to 6 residential units upstairs with only a single tenant remaining. Property taxes on this baby? $28k. Ouch! Rent roll? A gazillion dollars.
69 Sterling St. I believe this is Prospect Lefferts Gardens. Opening bid: $499k. Sold: $499k. Looks like someone got a sweet deal, although I didn’t see the interior.
4628 Beach 46th St. This place was getting bid up and we were like “Where the F is that?” I thought it was Dyker Heights or somewhere near there. Looking at the map, it seems to be Sea Gate, a gated community at the tip of Coney Island. Interesting. Opening bid: $$320k. Sold: $425k.
331A Stuyvesant Ave. This was the other house we actually previewed. A 2 family with older tenants that kept the house in decent shape. Some details remain, but the house needs updating and restoration. Really, not major work. A friend of a friend wanted this but got outbid. 🙁 Opening bid: $315k. Sold: $350k.
151 Prospect Ave. Interesting, I thought there would be some crazy bidding on this house because people are going gaga for the South Slope these days. (Yeah, I know…it’s really Gowanus over here.) Starting bid: $250k. Sold: $350k. I’m thinking the buyer could probably do NOTHING and turn around and flip it for $500k.
155 Berry St. First photo above. I saved this one for last because had us floored until we figured out just how much Williamsburg property is worth to developers. Opening bid: $695k. There were maaannnnyyy bidders going nuts. This little shack actually went for $1million and change. Surely, it’s a tear down.
Fascinating, no? Oh, and the nicest thing? Everybody applauds each time someone wins a bid.
