How to Buy a Home Through a Public Auction

Auctions are one of the many options available for people who are looking for homes to buy. Most of the homes that are in these auctions have been repossessed, or foreclosed, by the lending institution that financed the owner. The owner defaulted on payment and the home is now for sale. Public auctions can be difficult to figure out, especially if you are inexperienced. Here, you will learn the steps that you should take to buy a home through a public auction.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Access to a real estate agent or title company Financing or full amount of bid in cash or cashier's check

1. Locate homes that are scheduled for auction. You can search the newspaper or you can use a real estate locator service (see Resources).

2. Contact the trustee assigned to the auction to verify the details of the auction, like the time, date and location. Also ask about any specific requirements that you may need to meet in order to bid on a home, such as age or money on hand.

3. Gather information about the home(s). This information, like the lien and any money that may be owed, is public record and can be accessed through your county's record department or the online locator service.

4. Decide on a bid amount. The opening bid will be the amount of money that is owed on the home. You will need to consider any fees and extra money that will be associated with your purchase. Your bid should be higher than the opening bid.

5. Place your bid with the auctioneer. This process can be lengthy as bidders try to outdo one another. Pay attention to the participants and make sure that you are not overbidding.

6. Gather proper documentation from the auctioneer if you have the winning bid and all other information related to the home, like the deed and repairs.

References

• Homes for Sale by the U.S. Government

Resources

• AuctionZip Real Estate Auctions