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The real estate business in New York is, to paraphrase the late Sen. Lloyd Bentsen's comment about Texas politics, a contact sport. That rough-and-tumble attitude extends to real estate auctions, where both buyers and sellers need to be aware of the potential risks and the possibility for manipulation.
While private auctions represent just a small slice of the real estate market, they have been growing in popularity as more homeowners and even builders turn to auctions for a quick sale in a soft market. In the soft New York City real estate market of the early 1990s, for example, buyers were able to purchase even desirable Manhattan properties for bargain prices at private auctions. As private auctions gain in popularity again, however, past experience at foreclosure auctions points out the scope for brazen manipulation ' even when the sales are conducted at a courthouse or by the sheriff.
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