Auctions vs REOs

I have not been to a live auction, but have checked into it and understand that you have to have your money ready right then and there to purchase. If this is a "virtual" experience how are you supplying your earnest money? What is their fee? They charge 10% on the first property and 15% on the 2nd (or more) properties here in AZ.

Public auctions usually have all the homes on open house certain days of the weeks prior to them going up for auction so you can look at them first.

I have been concentrating on REO's and I WOULD NOT purchase sight unseen. In this market it can look great from the outside (or a photo of the front) and then when you get inside, the coppers gone, it's grafitti'd inside, holes in drywall, roof leaks, the kitchen cabs and appliances are gone.

I would try one first as a spectator and see how it goes. I thought the fees associated with the auction were too high and cut into my renovation budget.

rbncowgirl, that is great advice. Always inspect the propeties before purchasing. Do all the homework and make sure the values make sense for you to bid. Tax auctions do vary from state to state so buyers must understand exactly what rights and responsibilities they have in a tax sale. I bought a tax lien in my state but the former owner is suing to overturn the sale. He'll eventually lose but it costs time and money to settle the situation.