Is an Auction a Good Deal?

Many buyers have the notion that buying a home at auction (not sheriff sale) will bring them a rock -bottom price. What they don't realize is that an auction is just a marketing technique used by  some agents to initiate a sale. The agent lists the property with an auction company but there is a reserve price requirement that must be met before the property can be sold. So if you thought you could bid $10,000 and win the auction if nobody else bids, think again. The reserve price is usually close to market value. There are usually fees that the buyer must pay to the auction company. In many instances an auction is no better value than buying a bank owned property outright.