Auctions - Are They a Good Way to Purchase a Home?

Auctions are being advertised on TV, radio, and in theWithout inspections one could be making a large
newspaper. These auctions are selling foreclosedfinancial mistake. The last thing anyone wants to do is
homes that the banks could not sell by conventionalbuy a "money pit."
means.Remember too, just because a bid price is advertised
The banks provide one or two weekends... where thethat does not mean the auction house will take a bid
house is held open for potential buyers to preview thethat low. The auction house has the right to reject any
homes to be auctioned. Many times these "openoffer, even those who come at the bid price.
houses" are referred to as inspection weekends.There are great opportunities in the current market,
These "inspection weekends" do not provide thewhether buying a home for your personal use or an
buyers with a true opportunity to do inspectionsinvestment. Foreclosures and short sales are large part
(termite, property, roof, chimney etc) The power andof the market and can be a great investment. Due
water may be turned off, so even the most basicdiligence and knowledge will save you money over the
tests can not be done.long run. Hire someone who has experience and is
These homes may have been sitting vacant for manylooking out for your interest. In most areas, including in
months. When then were occupied the homeownersmy market, the buyers agent is paid by the seller (this
were financially strained. Maintenance is usually put onincludes bank owned homes).
hold when finances are tight.