1. The properties on these auction sites are homes that were previously listed on the market but did not sell. Perhaps they were overpriced, in poor condition or in an area with either too many listings and too few buyers.
2. The minimum bid price (often quite low) is not necessarily the price that will win the auction. Often the owners will have a reserve price. I've seen homes come up for auction and presumably sell, only to see them be relisted on MLS after the auction. Clearly the reserve price wasn't met.
3. The auction companies charge a percentage 'buyers premium' on top of the price of the home. So you can add 5 percent to the purchase price.
4. Many of the homes that are offered are 'cash only' meaning that in the eyes of the auction company a lender won't write a loan for the property. So if you buy a cash only listing but you need to get a loan - and you can't get a loan - that's YOUR problem.
5. If the auction is taking place on site (as opposed to online) and you want to use a real estate agent, your agent will need to register you as their buyer well before the auction - or you will have to pay the agent out of your own pocket. They WILL pay for an agent, but the percentage is low.
6. You need to read ALL the disclosures, ALL the boilerplate AND do you due diligence before bidding. This is especially true when buying a home at auction as the rules are different and the process is less forgiving than buying a home on the open market.
Please do your study before you bid! Make sure of all the liens against property through the title Co.
and check the current value of the property, consideration for the extensive damages, repairs including
R.E. Broker Associate
Realty World, Golden Hills
Us representatives here do this every day we have made a career out of helping people find and sale homes. Even though the internet has a lot of information the general public who is not in the trenches would have to invest a significant amount of time trying to learn the process when your agent get's paid by the seller to do this for you.
All the best to you.
The homes at Auction.com are not bargains by any stretch of the imagination.
I recommend that to get the home that you want, that you do not limit yourself to Auction.com.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
Prudent to consider learning all the facts about the property before making a bid as well as
The Neighborhood Comparables and crime stats or schools based on your priority.
It is prudent to work with a local professional to guide you through buying a foreclosed property.
Then consider whether auction.com makes sense or buying on court steps?