My real estate agent and real estate attorney both say I stand a good chance in getting a home below market value at an auction. Is that possible?
Yes, but probably not for the reason you may think. Many homes wind up on the auction block because the home is in or headed for foreclosure or because conventional selling methods have failed. That can be enough motivation for the seller to offer a bargain. On the other hand, the seller may be using the auction process to generate a bidding war that will boost the price. If you do your market research, you’ll know ahead of time what’s market value and what isn’t. Research is your ace in the hole. And, with two professionals on your side, instead of just one, it appears as if you also have a wild card. Auctions aren’t for novices. If both are professionally competent and auction experienced, they’ll help you scrutinize the deal, call in a home inspector to check the property’s condition, explain your financing options, go over closing information and explain the terms of the auction. …
