Homebuyers need to be cautious at all times if this recent episode is anything to go by. A home auction turned into a smoke and fire affair that nearly turned the winning bid into ashes.
The winner, Tony Stern thought he had made away with a killer deal when he managed to buy a $432834 Palm Beach home for a mere $235600 last July.
The lucky winner had no idea that the Mediterranean home – a four-bedroom house with three baths – he had secured for a half its actual cost had been razed to the ground a few days before it was due for auction.
Where foreclosures or tax-deed auctions are concerned, or when a property is put on an auctioneers list for failure to meet its tax obligations, county officials often encouraged to be cautious.
The buyer had already made a deposit worth $11780 to secure the bid and was on the way to clear the balance when he realized that his would-be Loxahatchee house had been burnt to the ground.
One thing was on the buyer’s mind. He was not going to let his money disappear into thin air. So, he headed to court to ensure he got back his initial deposit.
Stern, the buyer, go reprieve from G. Joseph Curley, Judge at the Palm Beach Court, who order the auctioneers to issues him a full refund.
According to Stern, he was not expecting the ruling to go in his favor. It could have gone the other way. Stern is not new to public auctions. He runs the PropertyOnion.com platform, a website that links investors with real estate deals. Stern has close to 35 years in the real estate sector.
This is a clear indication to anyone who is into real estate that even the most experienced person can be crashed sometimes. Stern, who hails from Boca Raton, admitted that the Loxahatchee home was slightly out of this usual comfort zone. So, he made sure to have a look at it before attending the auction to make sure everything was in place.
While Stern was lucky to have a full refund, as an investor, he does not feel happy at all. He still feels upset because he lost the opportunity to own a great investment. His company lost profits worth $200000.
However, someone else will be lucky to bid and buy whatever was left of the property since the judge asked that it be put up for sale.