If you are thinking about buying a home at auction, it can be a way to get a great house at a low price. However, there are some things that you should be aware of. It is definitely much different than visiting a house with your Realtor, getting a tour, and then making an offer. An auction is a fast paced, serious business. Be prepared well in advance. The following information will help you to get started.
Drive by the house ahead of time
You can get some clues as to the house, its condition and whether or not it is worth bidding on by driving by. If no one is living there, you may even be able to peek inside a window or get a look at the yard. This is likely your only chance to see the house. Often these houses are bought without the bidder ever seeing inside. It is a leap of faith to choose a home this way.
Have your check with you
There is a fee that you will pay in order to get in on the bidding. You will also have to ensure that you have the money to buy the house should you win. Do not big on anything unless you are sure you can pay for it. Keep your head and don’t get caught up in going higher. Stick with your budget, and quit before you get in over your head. By bidding you are making a serious commitment to buy the property.
Be prepared to put a lot of time and work into the house
You can end up with a house that is worth a lot more than what you paid for it. However, you will often have to put a lot of work into it. You may get lucky and have all the work be purely cosmetic, in other cases there can be more serious issues. Remember that when a home goes up for auction, it is usually because the person who owned it was having financial problems. There was probably not a lot of money available for upkeep. Things may have been let go.
Keep the above information in mind as you head out to your first auction. It can be fun, and exhilarating. You just might walk away with the house of your dreams at a fraction of what it is worth.