CHARLOTTE, N.C. -- Real estate auctions are becoming more popular these days. While it may be a chance for you to get a great buy, you should do your homework first.
"It's a water access community on Mountain Island Lake," said realtor Sandy Coyer, showing a home in Mount Holly that sits on more than an acre of land. "It's five bedrooms and five and a half baths."
The home originally sold for $700,000.
"Our current auction list price is 424,900," said Coyer. "The bank understands the market."
And so does Coyer.
"I've been doing foreclosures since the year 2000," she said.
New for her this year, Coyer is turning to auction companies, like Texas-based Hudson and Marshall, to get properties that have sat on the market sold.
"You buy it as is," Coyer said.
No contingencies. No repairs. That's why Janet Hart with the Better Business Bureau says you should check out foreclosure properties before buying.
"You certainly can drive by, walk around the house," Hart said.
And if you're still interested, pay for a home inspection.
"It's going to cost you probably $300 to $500 to have that done but it could turn up some really big problems you can't see," Hart said.
For even more peace of mind, Coyer says ask your realtor for a competitive market analysis to make sure a good investment is as good as you think.
"To know that even though it's a good price for today's market, it is going to be a good price two or three years down the road," Coyer said.
Also, check out the company conducting the auction. You can do that with the Better Business Bureau.
Hudson and Marshall has an "A" plus rating and only one complaint in the past three years.
