A two-story house on 20 acres in Sherwood, seized by the IRS and auctioned off Monday, Aug. 1, sold for $482,820, which was less than $2 over the lowest possible bid.
The 7,897-square-foot house, built in 1987 at 27342 S.W. Ladd Hill Road, has four bedrooms and three bathrooms.
“The house was in good shape and there was lots of interest, but people backed out,” said IRS representative Brittanny Dipla.
The name of the buyer hasn’t been made public.
Dipla said the former owner has the right to re-acquire the property within six months at the sale price plus interest.
Dipla said she received calls on the morning of the auction, a response to an Oregonian/OregonLive story, but the deadline for mail-in bids had passed, the registration deadline was at noon and the in-person auction was taking place at the IRS offices at 225 W. Broadway in Glendale, California.
There were other restrictions.
The property was sold “as is,” with no guarantee of its condition and no repair allowance.
Potential buyers could only view the property while driving by it. Photos of the house and land were posted on the IRS Auction website.
The winning bidder had to pay 20% of the sale price at the auction and the balance is due on Friday, Aug. 5, according to the auction rules.
There is no financing. Payment must be made by certified cashier’s or treasurer’s check, or money order payable to the United States Treasury.
The sale lifts the IRS Federal Tax Lien, but other liens listed in the Notice of Encumbrances become the responsibility of the buyer.
The minimum bid required was $482,818.35.
For more information about upcoming IRS auctions, visit irsauctions.gov.
Buying a house at auction is unlike a typical real estate transaction. An agent doesn’t write up an offer. The property can include furnishings and movable structures.
Bidders are to conduct their own research and due diligence before making an offer. Some “as is” properties are sold for cash while others, not IRS properties, can be financed before the deed changes hands.
Each auction has its own rules, terms and conditions but most require preregistration and a deposit.
Some auction companies, but not the IRS, require the bidder to pay closing costs such as escrow fees, back taxes and broker commissions or a buyer’s premium, which is a percentage of the hammer price.
— Janet Eastman | 503-294-4072
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Read More:Sherwood house on 20 acres sells for $482,820, $2 over the lowest possible bid in IRS auction