Bidder needs to bring the stated amount of money required to bid on the home
Winning bidder will have 30 days to close on the home or they will automatically looses their deposit
In most cases you will not have access to the property's interior to inspect its condition
Yes, major concerns. The processes vary dramatically. There is no disclosures from the seller, financing must be pre-arranged for a short term loan to be refinanced sometime later. You can't inspect the home and all sales are final.
Unless you are a very experienced buyer with money to spare and are able to buy very well, I wouldn't advise buying at an auction anytime soon.
If you want to learn more, go to some auctions with your hands firmly in you pockets. Watch, listen and learn. Follow some of the properties after they've been sold. Some will be flipped, some will sit and others will go back to the lender because no one bid.
First there are some significant risks involved with an auction that are not part of a regular sale. With an auction there are no guarantees that liens associated with the property have been resolved or that the home is not being presently being occupied by tenants that are unwilling to move. This leaves the lengthy and often difficult responsibility of eviction in the lap of the new buyer. Auctions also do not normally allow for structural inspections so buyers are could be inheriting some pretty major issues without knowing.
With all of this taken into consideration, I for one would recommend chasing "foreclosure" property opportunities and leave auctions for the real gamblers.
30 days to close cash.
Is there a tenant?
Can you view the inside?
What is the condition of the property?
Are there back taxes?
Unpaid water bills?
Is there clean title?
underground oil tanks?
knob and tube wiring?
water in the basement?
Do you know if it is a good value or not?
I you buy regular sale, your agent should be able to guide you and you will have the opportunity to do an inspection, get a clean title, get a mortgage if you need one, and have the home delivered in broom clean condition without a tenant.