Web Extra: Navigating Foreclosure Auctions

There’s a lot more to buying a foreclosed home than visiting an open house. Dolly Lenz of Prudential Douglas Elliman has three tips to help you navigate once you hit the auction block.

1. Do your homework. Visit the houses you want to bid on. Get estimates for repairs, consider getting an inspection done and be ready.

2. Set your limits for bidding early to avoid getting trapped in a frenzied bidding war. Start backwards with your budget to come up with a final number.

3. Hire an attorney. Review the contract of the sale that you will be required to sign. It is critical to make sure that all liens and problems are recorded so that you can be sure you won’t be responsible if something arises once you are living in the home that was not your fault.