Auction properties often have some fix-up problems attached to them, so it is a very good idea to inspect such properties thoroughly before bidding.
Short sales may or may not save you money; however, they move off the market quickly if they're appealing, so it's a good idea to take a look at them as soon as they hit the market.
What you may find, in terms of short sales and auction properties, is that they may --or may not -- save you money on the purchase.
Short sales typically take a very long time and sell fairly close to market price. That's because banks have become much better at determining home values. Also, because there is a shortage of home inventory, banks have learned that they do not necessarily need to discount short sales.
Short sales mean the seller is short of cash and is unable to pay the mortgage, but these homes do not sell at large discounts.
Auction properties may sell at discounts, but they may also sell at inflated rates because of the excitement that the atmosphere creates.
You may find that dealing with an owner who controls his or her property is equally worthwhile.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions