A Day at the Auction

A couple of weeks ago I attended a real estate auction. This wasn't a foreclosure auction or tax sale on the courthouse steps. This was one of the many auctions that is advertised on tv or billboards throughout the city. These homes have already been foreclosed and the banks that own these properties use auctions to quickly sell their inventory.

The auction can result in a great deal for a buyer but there are a few things you should know.

1. Inspect the home before the auction. Do your due diligence upfront because there is no negotiating on the price once you have the winning bid.
2. Don't expect to get the property for the opening bid. Even if the area is undesireable and the starting bid is $500, you can expect the price to jump from $500 to $1,000 to $10,000 in a matter of seconds. This is because the bank that owns the property may be bidding against you because they want to obtain a certain amount for the home.
   
3. Don't go it alone. If you are working with a real estate agent, you don't have to abandon them if you purchase a home at an auction. They will still receive a commission and can best advise you on the market value of the home, financing options, etc.
   

If you are interested in the auction, there is one this Wednesday at the Georgia International Convention by the airport. Click here for details.