A new item in today’s USA Today tells us that real estate auctions are big.  In fact, there has been 5% revenue growth in the last year and a 47% increase since 2003.

But it’s not time to invest in auction houses just yet.  As many buyers are finding out the hard way, escrow does not close at the auction. Many of those “sales” never come to pass.  Just like the “reserve” prices on eBay, the seller may decide that the “winning” price is too low!  In fact, a current lawsuit charges “Many modern real estate auctions are nothing more than a bait-and-switch scheme to lure hopeful buyers to submit offers that can later be accepted or rejected by the lenders/sellers, despite the general public’s perception that once the auctioneer declares, ‘Sold,’ the property is in fact sold.”

If you have time and energy and a whole lot of patience, sure, you can get some deals on auction.  If you really need a place to live in, you are better off calling a reliable Realtor.

A couple of items to read:  gas and suburbia; and new federal mortgage rules.  I am of mixed opinions on these rules, as they may make it impossible for the self-employed to buy a home.  We will see how that shakes out.