"Costs" from a Sheriff's Sale

[Chad Jarrah]

Just curious about the "costs" during a sheriff's sale auction. If the upset price is $35,000 and the costs $5,000 and you win the bid at $35,000, would you pay about $40,000 to buy it and close? Thanks.

Also, one other question. I've seen seasoned sheriff sale buyers make a lower bid on a property right after the bank makes a large bid. For example, property at 123 Main St is up for auction. The bank says their max bid is $125,000 + costs. The potential buyer makes a bid of $60,000, then the bank $65,000, then the guy $70,000, then the bank $75,000, then the guy stops and the bank takes it. The bank already said their max bid would be $125,000 so what is the benefit of the guy to try and undercut them. I know there is a reason for this because the gentleman is a very active buyer but don't know what it is. Can anybody shed some light on this?

Thanks again!