While it’s possible to get a deal on your dream home at the auction house, buying a home at auction isn’t always a bargain. The starting price may seem reasonable, but several bidders can force the price well over market value.
Avoid overbidding by doing research. Are any outstanding property taxes or liens that you’d have to pay for upon purchase? What are comparable homes in the area selling for? Is the neighborhood on the way up or on the way out? On auction day, set a strict budget and don’t let emotions take hold of your paddle in a bidding war.