I thought now would be a good time to repost this article about auctions!!!

Chincoteague Island & Eastern Shore of Virginia/Maryland Real Estate Blog

From time to time I get questions about whether it is a good idea to buy property from a real estate auction.  First we need to identify why the auction is happening to begin with.

In most cases…an auction is happening because the owner of property owes money against the property and one of the lienholders is taking action to get the money owed to them.  It could be a foreclosure sale, a tax sales, a sale by an HOA, or even an auction by the owner themselves to try and sell the property.

There is one obvious reason, as a buyer, to buy at an auction…to get a property cheaper than the current market value.  Getting a property significantly below market value only happens about 50% of the time.

As for the cons…there are a number of reasons why there could be a negative.  The biggest reason is a buyer…

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