If you're hoping to buy a foreclosed home, go for one that's been listed with a real estate agent -- not one that's up for auction on your local courthouse steps.

Buying a foreclosure can save you some money. Even after factoring in the cost of repairs, foreclosed homes cost an average of 10% to 20% less than comparable homes in the same neighborhood.

But if you try to buy one at a foreclosure auction, you'll be up against professional investors who have a better understanding of the market and years of experience in the art of bidding.

Another problem is that buyers usually aren't allowed to inspect homes before an auction, making it impossible to determine how much work it will need before you can move in.

Nasty surprises are not uncommon with foreclosures, and they can turn a great deal into a costly mistake.

You want a home that has already been through a foreclosure auction and claimed by the bank that holds the mortgage because no one bid enough to repay the debt.

These are referred to as "real-estate owned" properties and are turned over to a real estate agent to sell. You can tour the home before you make an offer. The most serious damage is often repaired before you see the home.

It's perfectly acceptable to take a licensed general contractor with you to assess the home's overall condition and provide an accurate estimate on how much it will cost to make everything from essential repairs to cosmetic improvements.

If you're in the market, our 10 smart moves for buying a foreclosure can help you make all the right decisions.