Attending an auction when buying a home can potentially save the buyer money, but there are some additional aspects to take into consideration which don’t apply with regard to typical real estate sales. Here are some details on how and where buying a home at auction is possible:

Various national government agencies sell homes at auction. According to USA.gov, these include the Internal Revenue Service, Housing & Urban Development, and the Federal National Mortgage Association. Additional agencies sell other types of real estate in this manner, such as non-residential buildings and acreage. Buying a foreclosed-upon home at an auction is another option.

Buying homes and other properties at auction on eBay.com is possible as well. After searching under the “Real Estate” category, for better results check the boxes on the left for “Buying Options: Auctions” and “Items Within … Miles”, then enter your zip code under the “Location” heading and select a a maximum distance. Some listings are actual auctions, others are only advertisements which don’t involve any bidding.

Numerous home auctions charge a “buyer’s premium” in addition to the sale price. Make sure you are aware of the amount before buying. The U.S. Treasury web site indicates that there is no buying premium at Internal Revenue Service real estate auctions. You should determine the acceptable payment methods and required deposit percentage beforehand as well.

Home inspections must be carried out somewhat differently; many auctions have a set series of times and dates when potential buyers can come to inspect them. Other sellers may request that bidders schedule a home inspection prior to the auction (perhaps during it, if it is a long-term auction such as on eBay), or offer other types of arrangements. A complete inspection is important, since these homes are generally sold on an “as is” basis.

As with other kinds of auctions, there might be a “reserve price” which applies when buying a home at an auction. The reserve may or may not be kept secret. If bidding fails to meet or exceed this price, the home will not be sold, and might instead be offered at a fixed price or re-auctioned at a later date.

Basically, when buying a home at an auction it is important to understand all of the financial terms and requirements, as well as carefully examining the home for flaws. Homes are offered at auction by a variety of businesses, government agencies, and individuals.