Pros and Cons of Buying At A Home Auction

Atty for HealthSouth registers to bid on Scrushy lake home
An auction can be an exciting event, but is it the right place for you to buy a home or an investment property?

There can be several advantages to buying a property at an auction, and the most significant of these is probably the possibility that you can buy a house for a cheaper price than through a regular sale. Also, once you have won the auction you can’t lose the house by having another potential buyer come in with a higher price, which can happen if you are buying through a normal house sale situation.

However, there are also some significant disadvantages to consider. There may be auction fees involved, so you should check these before you calculate your maximum bid. It is also possible to get carried away at the auction event and bid higher than you are able to afford. Another problem is that because the nature of the auction process means the entire sales process is faster, you may not spend the necessary time investigating the property before you have to bid on it. Do not get involved in an auction unless you feel confident both about the condition of the property and the state of your finances.

Creative Commons License photo credit:?LakeMartinVoice