Tips for bidders

First go to an auction as an observer to get a feel for the fast-paced process.

Read the auction’s terms and conditions sheet and the contract, and consider showing it to an attorney before the auction. Most auction companies post the documents on their Web sites.

If possible, inspect the property. Most are sold "as is."

Research the neighborhood and comparable sales so you don’t spend more than you should for a house.

Bring what’s required if you are going to bid. Most auctions require bidders to put up a cashier’s check for a certain amount to show their true interest.

Types of auctions

Absolute: The highest bidder wins the auction, regardless of price. The same as an auction without reserve.

With reserve: An unpublished price the seller has set for the property. It can be different than the minimum bid. The seller can accept or decline a winning bid within a specified amount of time after the auction.

Subject to lender approval: A lender, who either owns a foreclosure or who has financed a developer, must agree to sell the home for the amount of the winning bid.