Posted on: 23 December 2015Share
Online property auctions are a simple, convenient way of buying property. You can buy almost any type of property from homes, land, or commercial real estate. You can also find really good deals on foreclosures or government seized property. However, knowing how to navigate online auctions, winning, and spotting good deals can be tricky. Here are tips on online property auctions:
1. Have a plan
Before you even search for online auctions you need a plan. What is your goal? If you're looking to flip a property or find the house of your dreams for a bargain, this can affect your strategy and your budget. You need to consider the neighborhood, repairs, and taxes. Take all these factors into account and set a firm budget.
The only way you will know a good deal when you spot it is through research. Before making any bids, do your homework. When you find a property you're interested in, research the seller. Look for positive reviews and look up information on the seller through the Better Business Bureau and the Federal Trade Commission. You also need to research similar properties in the neighborhood and compare prices. If you live in the area, take a look at the property in person.
3. Have cash ready
Many online auction websites require a deposit before you can start bidding. Once you've won an auction, the website will ask for a cashier's check to pay the down payment. If you can't pay, the auction will go back up and you will not get the property. Make sure you have enough capital and financing ready to go before you start bidding.
4. Hire a real estate agent or lawyer
If you're planning on buying property in an area that is not local, seek professional help. A real estate agent or lawyer can visit the property for you and investigate the deed. They will help you determine if the auction is legitimate and what a fair price might be. A professional can also help you avoid bad or unfavorable contracts.
5. Be patient
Winning an auction for the right price takes patience. You may search for months, or bid on your dream home only to find out there's a reserve that's over your budget. You also need to be calm and patient while bidding. The best way to win is by swooping in at the last minute. Bidding during the last few minutes of an auction keeps the price low and also extends the auction for a couple minutes. It's absolutely essential that you don't get caught up in the excitement and competition. Don't blow your budget trying to win.
These five tips will help you win the online property auction and get a great deal. Contact a real estate agent if you have any questions.