Many home buyers think that real estate auctions are the best way to get a good deal on a home. While there are certainly deals to be had, auctions also can be dangerous for buyers.
Buyers planning to attend an auction are advised to do their homework and know what the property is worth, especially since auctions generally do not offer appraisal contingencies.
Buyers should know what repairs are needed and what it will cost to make the home livable.
Setting and sticking to a maximum price and not forgetting to include the buyer’s premium is critical.
Most importantly, maintain control. Many auctions turn into feeding frenzies. The excitement of the moment leads to bidders getting carried away.
