It depends upon what type of auction it is. At a Sheriffs sale remember the state of Michigans redemption time frames. I see the best deals on properties when they are REO's with clear title.

Dan, I'm not an expert in this. It seems you've received some good suggestions. Can I just add that purchasing a home at auction requires due diligence on the part of the consumer. Make sure you pay for a Title Search from a qualified local Title company. There would be nothing worse than to have the home sit in limbo because the bank used an overseas Title Company and they failed to find an error and you could not get clear Title.

If you are inquiring about a sheriff auction, it's very rare for the primary lending bank to not purchase the home since most are worth less than what's owed to the bank. Again, due diligence is the responsibility of the consumer when purchasing at an auction. A knowledgeable real estate professional may be a good investment, but personally I would not rely soley upon a market analysis.

Dan

The buyers have to register, have cashier's check ready for down payment, and proof of funds or funding to close.

The buyers will then bid on the property.

If there is no reserve, the highest bidder takes the property.

If there is a reserve, and that reserve has not been met (i.e. no one bid high enough), the property is not sold.

In bidding at auction, it is wise for the buyer to have thoroughly inspected the property so they know what they are getting. (A $XXX inspector's fee up front could save one from paying too much for a money pit)

Auctions are fun. But it is wise when bidding to remain objective and focused.

You may want to go to a few auctions first.

Best of luck

Hi Dan - It is definitely worth your time to go to the auction. Even if you don't purchase the home you can at least see how the process works. It's actually pretty interesting. Go to the auction house's website (if you know who is running it) and find out the requirements for auction day. There is usually an amount that needs to be brought in the form of a cashier's check that is required for registration. Also, if you are not working with a Realtor, there will be a posted time slot when the home will be open for viewing prior to the auction. Make sure you take a look at the home before you bid. There could be major repairs needed and you need to consider that when setting your maximum price.

Some auction houses will entertain pre-auction offers. That will also be listed on their website. You could have some good luck getting the deal done before it actually goes on the auction block. The price that is listed on the website is generally the "list price". I have seen homes go for thousands less than listed so make sure you are well informed before making an offer. There may be a condition of a "Buyer's Premium" (sometimes up to 5%) so keep that in mind too.

Good luck! Just be careful to stay with your targe price. Don't get caught up in the action and pay more than you wanted. That is what they are hoping for people to do in all of the excitement!

Nicole Sleeva

I would absolutely go to the auction. Usually there is a minimum reserve amount ... kind of like Ebay. So, the $223K is more than likley the least amount they will take for the home. If you'd like I can do a market analysis to see if that's a good price or not for the home and area. Every auction house is different. They may have some stipulations on how much down you have to have at the time your bid is accepted, etc. What site is it? Check out their FAQ's section if they have one to learn more about how they operate their auctions.

Good luck and let me know if you'd like that anaylsis! Merry Christmas!