The Process of Buying a Foreclosure at Auction

January 8, 2008

I often receive emails and phone calls from people who would like to participate in a real estate auction but have little or no knowledge of how the auction process actually works. Paola Iuspa-Abbott, of the Daily Business Review, published a piece today entitled “Real Estate Auctions Can Help Homebuyers Gain Properties But There Are Pitfalls”. It’s a great read for anybody that wants to learn more about the auction process.

I also want to note that there is absolutely no cost to a potential bidder if they decide to work with a licensed real estate agent. The agent’s commission is paid for by the auction house from the buyer’s premium. The winning bidder must still pay the buyer’s premium regardless of whether or not they decide to use the services of a real estate agent.