The 7,897-square-foot house, sold at an IRS auction, has four bedrooms and three bathrooms.IRS

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.

Internal Revenue Service auctions include assets — from real estate to a liquor license — sold by the government for nonpayment of taxes.

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.

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.

More on the Portland and Oregon real estate market:

• 1917 mansion with unfinished restoration in SW Portland for sale at $1 million

• Portland pioneering Flanders sisters’ 1926 Arts and Crafts house is for sale at $2,375,000

• 1908 Colonial Revival house in Portland Heights where Eleanor Roosevelt stayed is for sale at $2.7 million

• Midcentury modern Rummer-built home sells for $1.2 million, $205,000 over asking price

• Prohibition-era Portland Tudor Revival house with a speakeasy is for sale at $1.3 million

• Homework to homebuilding: Eastern Oregon high school students sell eighth ‘Street of Dreams’ style house

• 1894 Queen Anne house, restored and upgraded with concealed modern luxuries in NE Portland, sells for $799,000

• Big house, low price: More bang for your buck by the square footage?

• Rebuilt West Hills fixer-upper with ‘defund the police’ and graffiti on crumbling walls is for sale at $2 million

• Architect Richard Campbell’s 1966 modern chalet in SW Portland is for sale at $1,465,000

• Modernist architect Neutra’s rare, restored Oregon house is for sale at $3,750,000

Note to readers: if you purchase something through one of our affiliate links we may earn a commission.

Registration on or use of this site constitutes acceptance of our User Agreement, Privacy Policy and Cookie Statement, and Your California Privacy Rights (User Agreement updated 1/1/21. Privacy Policy and Cookie Statement updated 7/1/2022).

© 2022 Advance Local Media LLC. All rights reserved (About Us). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local.

Community Rules apply to all content you upload or otherwise submit to this site.