I'm sure you're aware of the Real Estate and foreclosure crisis going on in the United States.  Because of this, there is an excess of homes on the market. Obviously some properties will be run down in unappealing neighborhoods as usual, but what's different this time is the surprisingly increasing number of well kept and even executive style properties that are up for sale for pennies on the dollar.

There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a Realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.

- More often then not the properties are in very good condition relative to  price.

- The selection range of home available to choose from is extensive.

- No Realtors to have to go through or agency Fees to pay (although you should still get advice from someone who knows something about real estate).

- You are not required to pay certain insurances.

- Good property investment to rent or resell.

- Less risky then the stock market, as you own something tangible

Disadvantages:

- mortgages may be harder to get (unless you have great credit with your bank).

- There may be existing liens or unpaid taxes against the property.

The main caution is to properly check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash handy (who does) that makes your profit potential much greater.

Government auctions happen are held every week throughout North America.  You can locate detailed information regarding auctions on the web. Some sites will even show you previews of the houses that will be available at the upcoming auctions. Buying an estate through a government auction could be very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding only at first visit to a government auction.  You should be acquainted with how government auctions work before finally deciding to buy your own home.