Buying via online auction

2 Replies

So a home that was on my radar a year ago was just re-listed as a bank foreclosure but now an online auction. I've never purchased via auction but I am interested in giving it a shot. Besides the condition of the home what all should I be researching before placing a bid on a online auctioned home? e.g. Liens etc. Thanks for your assistance.

@Wayne Brown read and UNDERSTAND the terms of auction. If possible see if the contract you expected to sign is online. The terms of contract should specify whether you are getting clear title and what expenses you may be responsible for.

I know people who have done well with online auctions. Personally  don't like them. I do like live in person auctions though. 

Assess the condition of the house from the outside if you are not allowed entry.  I buy from online auctions and have looked at houses that were involved in a fire, one that was condemned, one with a side missing.  Very bad condition for the starting price.  NOTHING about these issues were mentioned in the online listing.  Know it is buyer beware and bid accordingly.

Also know that the sites will bid against you.  Do NOT think that a bid against you is a real person.  Don't assume that another bidder is implying that the property is worth more than you initially decided it was worth.  

Be prepared to bid on the same property week after week.  Eventually they will lower their reserve.  Do not over bid!