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CHARLOTTE -- Foreclosed homes were sold at a fraction of their tax value Sunday at an auction hosted by the Real Estate Disposition Company. The REDC says buying foreclosures helps stimulate the economy and bring up tax values.

A Waxhaw home valued at $2.3 million sold for $900,000 and a SouthPark condo that was valued between $70,000 and $80,000 was purchased for $47,000.

Despite the great prices, investors warn that looks can be deceiving.

“For the most part, when people buy a house from an auction they think it's in pristine condition,” said Susan Grumblatt. “They usually are not.”

For investors, the cost to fix up the property is factored into the price. For some properties, it's just too hard to make a profit so they have to do their homework before coming.

“We have a set amount and that is it,” Grumblatt said. “We won't go over that.”

Buyers were required to have $2,500 plus a 5 percent deposit. Many of the properties were not eligible for financing.