The lenders out there will have to learn to take the bite. Do not worry they are very creative and will get their money back from you another way.



Many prospective home buyers and investors have been trying to get great deals at auctions. I wonder why banks are sending a great deal of their properties to auction.

Online auction house's popularity is huge today; go to www.auction-extreme-package.com you can have a mild auction feeling in the comfort of your own home. All it takes is a little addiction to online auctions and before you know it you will be at the live ones.

One of the first auctions I attended was held on the front yard of the property being auctioned. I was pretty mad that they showed up about forty-five minutes late. Within less than five minutes of their arrival the auction was over. It is truly amazing that from start to finish it was over so quickly.

When I go to a real estate auction as an investor I'm looking for a good deal. I know exactly what I am looking for. Also, what price they are worth and what I am willing to pay. Just too many times I just watch people bid them past what they are worth on the open market. On top of that they have to pay the auction house for its time. At that point you could have just made an offer on a similar property for a much lower price.

A fix percentage of the final bidding price is the most common way an auction house gets paid. That amount is added to your bid to make the final purchase price.

When placing your first bid at a real estate auction always remembers that there is additional cost on top of your bid. As rule of thumb I usually calculate about an extra ten percent in additional costs to be safe when calculating my highest bid price.

Today almost everything we read and sign have disclaimers throughout. I particularly like the auction books, go to www.auction-entrepreneur-kit-com they show you so many great deals in the front. When you flip to the rules and regulations section those great things don't actually exist.

The first few pages of an auction always show you what an amazing deals you could get. In truth those numbers are just there to get your attention and motivate you to actually attend. Do you think that anyone would sell a house $500,000 home for $79,000?

I always thought the when you go to an auction if you bid the highest you win. I wish that was actually true. Many of the auctions have all things these super low starting points. It seems that they always forget to mention that there is a reserve price in the front of there books. Basically those numbers mean nothing and are just a fantasy. The lenders still get the price they want or they don't have to sell.

Auctions seem to me to become a waste of time and money. I have to waste a full day and show them a considerable deposit just to bid. The actual bidding is supposed to be up to the buyers not the sellers