Expert: Jim Root - 1/16/2008

Question
Please describe the process of buying a house at auction giving the ins and outs, the pros and cons, and the procedures and protocol involved so as not to get ripped off in today's housing market.THANK YOU

Answer
HENRY--

I found your question in the Question Pool. Whoever you sent it to may have been hesitant to answer it, and sent it to the Pool, because of your statement "so as not to get ripped off in today's housing market!"

No "Expert" can ensure that you won't have a "bad experience" in the Real Estate Market--yesterday, today OR tomorrow's! Because we're such a litigious society today, however, your stated purpose may cause your question to be shunned by many who may fear retribution if their answer to you doesn't produce a positive experience at the Auction House!

Additionally, there's no "pat answer" to your question about "the ins & outs, the pros & cons and the procedures & protocol involved" in buying a house at auction!

As I would hate to see this question stay unanswered in the Question Pool, with you wondering why no response, let me give you this:

Real Estate auctions are done pursuant to the protocol set by the specific Auction Company conducting the sale of real property by the bid process. For you to become "learned" of the ins & outs and the procedures used by a given Auction House, you should contact that Auctioneer and obtain specific instructions on how their auctions work.Each Auctioneer may have his/her own method of selling Real Estate using a bid process! You'll probably find, however, that a few days before an auction,most of the Auction Houses provide a list of properties to be sold, instructions on how to view them, and often a minimum bid amount. Some will provide written instructions on bid procedures to be used at the Auction!
Some will use an "Open Bid" process with attendees verbally bidding against each other, while others may have you submit a "Written/Sealed Bid."

So,Henry, I urge you to do some research on the subject of buying a house at auction by contacting your local Auctioneers and obtaining from them their specific instructions for working with them on a purchase of Real Estate.

Further I suggest that before you buy any homes via the auction process, you visit Open Houses in your area, check regional Real Estate listings & ads, talk to local Realtors & Appraisers, in an  effort to become as Realty Knowledgeable as possible! Homes purchased at auction CAN be bargains--but if you're NOT well-versed in local Real Estate values/prices, you can pay TOO MUCH!
Good Luck--JIM