Auction Houses in Florida: How Real Estate Auctions Work and How to Profit From Them

By Diego Méndez, The Motivational Esquire

Florida has one of the most active real estate auction markets in the United States. From courthouse steps to online foreclosure auctions, thousands of properties change hands each year. For savvy investors, auction houses in Florida present both incredible opportunities and serious risks.

In this post, we’ll break down:

·         How auction houses in Florida work

·         The difference between foreclosure auctions and tax deed sales

·         Common pitfalls buyers face

·         Expert tips to maximize your profits

Why Florida Auction Houses Are So Popular

Florida is a judicial foreclosure state, meaning all foreclosures go through the court system. Once the bank gets a final judgment, the property is listed for auction. Thanks to Florida’s booming real estate market—especially in Miami, Orlando, and Tampa—auction houses attract investors from around the globe.

The best part? Auctions often sell properties at 30–50% below market value, creating the potential for huge returns.

Types of Real Estate Auctions in Florida

1.       Foreclosure Auctions

·         Run by the county courts.

·         Buyers bid on properties where the homeowner defaulted on their mortgage.

·         You inherit the property’s history—so a title search is essential.

2.       Tax Deed Sales

·         Triggered when owners fail to pay property taxes for three years.

·         Wipes out mortgages and liens, but requires a quiet title action to make the title marketable.

3.       HOA and Condo Lien Auctions

·         When homeowners stop paying association fees.

·         Risky, because banks’ mortgages survive these auctions.

How Auction Houses Operate

Most counties in Florida now run online auctions instead of traditional in-person courthouse sales. This has opened the market to investors worldwide—from Miami to Monaco.

Key details every buyer must know:

·         Deposit Requirement: Typically, 5–10% upfront before bidding.

·         Cash Only: Full payment is usually due within 24 hours.

·         Buyer Fees: Counties charge doc stamps and around 1.5% for administrative fees.

The Risks of Buying at Auction

Auction houses may sound like gold mines, but they’re full of hidden traps. Common mistakes include:

·         Buying HOA liens instead of the actual property.

·         Underestimating repair costs after purchase.

·         Forgetting that property taxes and unpaid HOA fees survive foreclosure.

·         Not budgeting for legal fees like writs of possession or quiet title actions.

Remember: going in blindly can cost you everything.

Expert Hacks for Success

·         Run a title search before bidding. It’s the only way to know what you’re really buying.

·         Set a budget cap and keep cash in reserve for renovations and legal costs.

·         Contact homeowners directly before auction—you might strike a deal and save everyone time.

·         Look at past auction winners in your county records and approach them. Many new buyers freeze and sell cheap when they don’t know what to do next.

Final Word: Treat Auctions Like a Business

Auction houses in Florida aren’t a game—they’re a business. With the right preparation, you can turn foreclosure and tax deed auctions into a powerful wealth-building strategy. Without preparation, you could lose your investment overnight.

If you’re serious about learning foreclosure hacks and Florida auction strategies, watch the full episodes of The Motivational Esquire on YouTube