AUCTIONS

What Happens at an Auction?

At an auction in a foreclosure setting, properties typically are described in a pamphlet or brochure that attendees receive before the proceedings begin. The information on the property can be everything from minimal descriptions to more detailed disclosures. Once a property is on the auction block, the highest bidder wins and then must purchase the property.

What Are Your Risks at an Auction?

While foreclosure auctions may provide fantastic bargains for experienced buyers, they also can present several pitfalls and risks for first-time and inexperienced buyers. For example, auction buyers rarely have an opportunity to thoroughly, or even barely, inspect a property. Once you purchase the home, all of the faults, damages, and necessary repairs become your responsibility. Also, buyers at auctions sometime are required to bring certified checks for 10% of the purchase price and must pay the remaining amount within weeks or even days – this can be a rushed and complicated process for a first-time buyer. As is often the case with great deals, huge discounts can come with huge risks. Buyer beware.