Real Estate Auctions - What newbies need to know

[Jennifer DeRosa]

Hi! I just joined the forum and looking to expand my knowledge in the real estate investment world. I have been exploring an auction happening in upstate New York (sullivan county) and am considering bidding on the property that is rural land. I did due diligence on the property (looked up outstanding liens, tax zoning, and reviewed the deed etc) but is there anything else I should consider before bidding? Should I avoid this type of auction in general when looking for deals? Does the bank usually come in and buy the property back at a higher than anticipated price? Anything and all advice surrounding real estate auctions is helpful and appreciated! 

Overall, I'm looking at the cheapest way to buy property with little debt financing and low overall capital down so figured auctions could be a good place to start. 

[Gurbeer Sangha]

You have done the proper due diligence, so you are good on that end. I work on foreclosure auctions in California and I have gotten some fantastic deals.

The biggest thing is have a very, very firm upper limit. Once bidding, it is easy to get carried away in the moment and end up paying too much. You need to have the chest to stop bidding once you hit your price cap.

Good luck!