Your Maryland Real Estate Experts

1) They can be deals, but so far, my investors are telling me they are not. People are bidding and thinking they are getting great deals, but the deals aren't that good. i.e. a case was just brought to my attention that someone won an auction for a townhome at $230,000 (Near D.C.). When I pulled up the comps for the home, the most recent sales in the area were $162,000 to $175,000. These poor people paid $55,000 over the highest comp in the area. You can have a Professional Realtor represent you at an auction. If you want to buy at an auction, use one of the MDRE Pros Professional Realtors to represent you.

2) THIS IS THE MOST IMPORTANT - MAKE SURE YOU HAVE YOU FINANCING SECURE!!!!!

If and when you win an auction at a home, you will have to put a deposit down on the home that day. From $10,000 to $20,000. IN MOST CASES THIS MONEY IS NOT REFUNDABLE! PERIOD. If you can't get your financing, the auction house will keep your deposit. With banks tighting up, it is getting harder to get financing, talk to your lender. Make sure they know you are thinking of buying at an auction. Make sure that they can get the loan. If you are planning on a FHA or a VA loan, the house you are buying at auction, may not qualify. Do you have a back up plan? You'd better. The poor folks that I was talking about above, couldn't get their financing, and now have lost thier $12,000 deposit they put down on thier home!