Our advice is to contact the auction company or bank for the auction prodess procedures.
A word of caution: preview the property and set a high number limit before you even go to the auction...don't get caught up in the bidding process and pay more then necessary.
The "Eckler Team"
I would second the opinion already offered. Basically a real estate auction works just like any other, you bid, others bid, you get excited and bid again, others get competitive and up the bid, you out bid them and the gavel comes down - bang! You win!
Or do you? There is usually a buyer's premium added to the purchase price which can be as much as 10 % of the final bid. You don't have the opportunity to do all the discovery you should do before you purchase a home and if you decide to walk away for any reason you stand to lose the deposit you paid, usually via cashier's check upfront.
They sure do seem like a great idea, but think about this for a minute... It's like an iPhone on eBay, they may list it for a penny and say that there is no reserve but there is no way on this earth that you are actually getting that item for one cent. Even if the seller is willing the other potential buyers are not.. The real estate market works the exact same way, the other people looking to purchase properties actually determine how much homes will sell for and how much they are worth.
My advice would be to get yourself a good, experienced Realtor and have them help you find a home you can purchase in a safer, saner and less volatile manner and for a much better price. Remember that hiring a Realtor to represent you as the buyer in the transaction doesn't cost you anything but not having one can cost you a bundle.
Good luck with your home purchase. It truly is a great time to buy!
Take care and have a great day!
Tisza Major-Posner, Realtor, IVPG Realty (909) 837-8922
Auctions are tough. You'll be competing with experienced investors with strong capital and a staff of participants who will together try to bid others out of the game. I don't have personal experience with foreclosure auctions, but I have participated in tax auctions before.
You should pull tax and public records on each property you are interested in. You'll probably not be able to see the interior of the homes, but you should at least drive by. Look for major issues, like foundation or roof problems. Be sure, too, to stay on top of the auction's inventory list. Often times savvy investors will have already acquired the best properties.
You can also pick up books on the topic...