auction sites

[Sam Bagwell]

I have never used an auction site such as auction.com.  I've come across two properties in my target area, but am hesitant to pull the trigger.  For those who use these sites, do you submit your bids directly or use a real estate agent?  Do you normally have the opportunity to walk through the property prior to submitting a bid?  Does the auction process provide for inspection contingencies?

[Michelle Fenn]

I have been both a buyer and sellers agent for auction properties. The auction process is far from predictable. Most require that you provide a credit card and they put a substantial hold on your credit card while you bid on an active auction. At auction.com the hold is 2,000 per auction. I am told they will waive the hold once 5-6 properties are purchased. The "bank" often authorizes the auction company to bid against registered bidders to bid up the sales price to the "reserve amount". There are pre-bid auctions, auctions and then if the reserve price is not met, post sale auctions. Most auction properties are listed on the MLS, the MLS list price is generally a pretty good indicator of the reserve price. The opening bid price will rarely result in a successful bid. Finally if you do get lucky enough to win an auction, use your own title company, I find the communication between the bank, asset manager, auction personnel and escrow often has much to be desired. Happy bidding.