In most states, when the gavel falls at a real estate auction, the deal is done. The high bidder signs the papers, and the property is theirs. However, buying a distressed property, foreclosure, or estate sale in North Carolina operates under a unique set of statutes that can surprise unprepared investors. In our region—from the courthouses in New Hanover to Onslow—winning the initial bid is often just the beginning of a marathon.

If you are eyeing an investment property in Wilmington or a vacation rental in Surf City, understanding the “Upset Bid” process is critical. Without a strategic approach, you might find yourself tied up in a bidding war that lasts months, or worse, losing a property you thought you had secured weeks ago.

The Myth of “Going, Going, Gone”

In North Carolina, judicial sales (which include most foreclosures and court-ordered estate sales) are subject to a 10-day upset bid period. Once the auctioneer declares a high bid at the county courthouse—whether in Bolivia (Brunswick County) or Burgaw (Pender County)—that bid is reported to the Clerk of Court.

This starts a 10-day countdown. During this window, any other qualified bidder can walk into the Clerk’s office and place a higher bid. To qualify as an “upset bid,” the new offer must generally exceed the current high bid by 5% or $750, whichever is greater.

Here is the catch that frustrates many newcomers: Every time a new upset bid is placed, the 10-day clock resets entirely.

The Coastal Realty Reality Check

While this rule applies statewide, the stakes are often different here on the coast. In rural, inland areas with lower price points, a 5% increase might be negligible. However, when you are dealing with high-demand coastal inventory—such as a sound-front home in Topsail or a luxury condo in Wrightsville Beach—that 5% requirement can represent a significant jump in capital.

For investors, this creates a specific set of challenges:

• Capital Liquidity: You must have your deposit (usually 5% of the bid) ready to move immediately. If the bidding war drags on for weeks, your capital is tied up, potentially causing you to miss other opportunities in Hampstead or Leland.
• The “Sniper” Effect: It is common for savvy local investors to wait until day 9, hour 23, to place an upset bid. This is designed to fatigue other bidders. If you are emotionally attached to a property on Oak Island, this process can be exhausting.
• Due Diligence Risks: Unlike a standard brokerage transaction, these properties are often sold “as-is” with limited access. You are often bidding on the exterior condition and title searches alone.

Strategic Patience is Key

Winning a property during the upset bid period requires more than just money; it requires discipline. Many successful buyers in New Hanover and Brunswick counties choose to monitor the Clerk of Court files quietly rather than engaging in a rapid-fire bidding war early in the process.

It is also vital to know your hard cap. The incremental nature of upset bids can lead to “auction fever,” where a buyer overpays simply to win the contest. In the coastal market, where renovation costs and insurance premiums must be factored into your ROI, overpaying can turn a great deal into a financial burden.

Expert Guidance in a Complex Market

Navigating judicial sales and upset bids is not for the faint of heart. It requires a deep understanding of local market values to know when to bid and when to walk away.

This is where Aspyre Realty Group steps in. We are not just here to facilitate transactions; we are experts in listening and communicating people's wants into homes that work for them. Whether you are a seasoned investor looking for your next project in Sneads Ferry or a buyer navigating a complex estate purchase, we act as your strategic partner. We help you cut through the noise, understand the true value of a property, and guide you toward decisions that align with your long-term goals.