The atmosphere is electric, the deals can be dazzling, and the process can turn a bidder into a home buyer seemingly in a matter of minutes.
But as interest in real estate auctions grows, bidders are finding out it pays to read the fine print, be prepared and realize that it’s best not to hire the movers until the deal, not the auction, is sealed. Not everyone who “wins” at an auction walks away with a new home.
The use of auctions as a sales technique has been growing all year, and auction companies expect the late summer and fall to yield a bumper crop of events since foreclosure moratoriums have expired and home builders have grown more desperate to shrink their inventory.
As interest in auctions has grown, the industry is trying to better educate potential bidders about what it admits can be a complicated process, particularly during the heat of the moment at fast-paced events.