What's the "catch" to buying homes at an auction?

[Michael Clark]

It seems like going to the local auction is almost too good to be true. I sat through one about a year ago and so many of these properties were selling at such a heavy discount. Forgive me if the answer is obvious, I'm only just starting my investment journey and trying to learn as much as I can. 

[Jay Hinrichs]

Quote from @Nathan Gesner:

Quote from @Michael Clark:

When something seems to good to be true...

There's no opportunity to inspect, so you have no idea what the condition will be like after purchase. Will it need new flooring? Paint? Has the roof been leaking and filled the home with mold? Are the previous owners/occupants still living there? If so, will they cooperate and leave after the sale goes through? If not, what will it cost to get them out? Are there any liens on the property? Did the previous occupant steal all the cabinets, fixtures, plumbing, doors, etc?

There are a lot of unknowns so you have to do a lot of homework to ensure it's a clean sale, then you need cash on hand to purchase, then you need cash on hand to renovate.

in all my court house buys and its in the 200 plus range.. I have had everything from  stripped of everything of value to broom clean with a note that we hope we enjoy the home LOL.. and everything in between.. Deals are different in different markets as well. in some small counties that are not investor dominated there can be some better deals less bidders in big cities or markets there is going to be a lot of sophisticated cashed up competition .. For most its best to let the asset go through the process then get listed by the REO broker then low ball those.