overbidding on properties at auction.com

[Val J.]

I was interested in a property that I saw on auction.com. I went and viewed it and thought it might be worth a go. The opening bid was $17, 500. By my estimate it would need at least 20K+.  The auction began Friday and ended today. To my surprise this house sold for a about $63k. The previous value was estimated at $83k. I'm in Dallas and I've been noticing housing being snatched up quickly. Personally, I thought the house was overbid. 3b 2ba 900sf in a C neighborhood. I'm new to investing and estimating but has anyone bid on properties from this site. Do people get bid fever and go overboard? Or is my inexperience have my jaws dropping at what people are willing to pay in this current market?

[Val J.]

Thanks for all replies. As a part of my research or field trip, I decided to go in person to view auctions that happen in front of the courthouse. Many people were there. I didn't fully understand all that was happening. Many people were there at the Auction.com tent with papers in hand watching houses that appeared on a flat screen tv. I didn't understand how they went by bidding on the properties. Another auction appeared to be foreclosures.  I finally made my way to the auction for properties that were being sold for back taxes. This is where I asked the most questions and learned that people don't always bid at the minimum bid and sometimes wait until the lower bid. Some houses/land were never bid on and were struck off.  I learned that you have to be careful because these properties could have additional liens and that bargain bid could eventually be a financial disaster. Some of those bids really went up high! I learned that the information that I researched on ROAM may not reveal all liens against a property. I didn't bid on anything. The $5 train ride and the education I received from asking others was well worth the trip. I would like to eventually get into this type of investment but I realized that I need more knowledge before I part ways with my $.