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Buying a Home Through an Online Auction – Are You Ready for This?
Auctions, Buying and selling tips, online auctions for real estate
There isn’t much that you can’t buy online right now and that includes houses. Smaller online purchases are pretty routine and they don’t make most shoppers nervous. At least not if they require small transactions. New shoppers worry more about the protection of their personal information. But, when it comes to a high ticket read more…
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The best real estate auctions on our site.
There are various advantages to partaking in real estate auctions. Keep reading to discover the advantages of buying real estate at property auctions to discover how to get the house of your dreams at a portion of the cost.
The following are some of the great advantages of buying a property through a real estate auction:
- When it comes to real estate selling prices, there is no asking price to come down from. Competitive bidding hikes up the opening bid prices.
- In real estate auctions, your property is sold as-is. There are no contingencies or numerous inspections or repairs to lower the price.
- Competitive bidding provides the truest measurement of fair market value, maximizes pricing and eliminates the negative impact of “overpricing” or “underpricing.”
- An auction is designed to distinguish potential qualified buyers with information on the property, engage their prompt interest, and call them to act upon the sale. An auction marketing campaign builds interest up until the final sale date, in turn maximizing the excitement to buy.
- The seller sets the sale date, terms, timelines and eliminates the inconvenience of unscheduled showings of their sale.
- Auctions shield sellers from stressful and awkward negotiations.
- The buyer is responsible for most if not all closing costs.
- Buyers come ready to purchase.
- It is required for auction buyers to put down substantial non-refundable deposits that lead to contracts with qualified buyers that mean business, who rarely fall through.
- The swift nature of the auction reduces holding costs such as mortgage payments, maintenance and repairs, taxes, insurance.
- In today’s market, it can be tough to determine the value of a given property. With that said, an auction is the best determination of value. With an auction, there is no money left on the negotiating table.
- The greatest benefit of an auction is the market response. Real estate auctions have produced sales for many properties that were listed for over a year without a single offer. The auction is aggressively marketed to the correct target market that in turn, produces results.
- Most auction sales occur in 30-45 days or less.
LandHub.com not only helps you sell your land; we also help you land your dream. Thank you for choosing us for all of your real estate auction needs. Please don’t hesitate to contact us if you have questions about real estate auctions.
Auctions
An auction is a sale open to the public in which the highest bidder gets the possession of the item or service. It is basically a process of selling and buying commodities and services. Such items are offered up for bidding and eventually sold to the highest bidder. Here, the participants compete in the open and every subsequent bid needs to be higher than the preceding bid. An auctioneer generally conducts the entire process. His job is to announce the prices of the lot and manage the bidding.
Where should I look for real estate auctions?
Buying a house that has been foreclosed on is a great way to save money and invest in real estate. One can check his newspaper for details regarding upcoming auctions. Usually, the back of the local newspapers is dedicated to auctions but it depends on which newspaper you use. Many auction websites also inform about the upcoming auctions. Another way is to check government and tax lien websites. Most of the foreclosed houses are sold through them. Online real estate websites also post details of the action. Zillow is a famous website that lists the time, location, and date of the auction. Realtors tend to have inside information and know of deals that should be jumped upon like a lion on a deer. Calling a realtor that specializes in auctions or an auctioneer will be helpful as he can guide you properly.
How do bank auctions work?
Properties are usually auctioned when the borrower fails to repay his mortgage. In such cases, banks conduct the process of auction and settle their account with the borrower. Banks go ahead with the auction of the property when the borrower defaults on three or four consecutive EMIs (every state has different rules). In such a scenario, banks serve the defaulter a notice and give them 60 days to respond. The defaulter can either pay his installments or he can submit his objection with proper justification as to why he was unable to pay his installments. If the defaulter fails to respond, the bank will initiate the process of auction. On the expiration of the given 60 days, the bank is authorized to auction the property.
What are the benefits of buying a property through an auction?
There is the massive scope of buying properties at a discounted rate. Not all properties have a reserve price. The ones who do not have a reserve price can land you the deal of your life. Sometimes the banks do a poor job in marketing the auction. If the reserve price is set too high, many people would not turn up. The unsold property will then be available for after-auction deals. If you can convince the seller after the auction with a fair offer, you may be able to get the deal well below the reserve price.
Are first time buyers allowed to buy properties at auction?
Yes, anyone can participate in an auction. In fact, many first time buyers are attracted to such sales since they do not have to face a lot of competition. However, you need to get accustomed to the entire process of auction. It is advised that you should attend an auction before participating in one. To start with, make a budget and add all the costs that are directly attributable to bringing the property into the desirable condition. Then start searching for properties that fulfill your criteria. If you want to finance your purchase with a mortgage, then it is rational to start looking for it as soon as possible. It is vital to get the details of the property as some properties are not mortgageable and most auctions want cash payments. It is sensible to get the property looked at by an appraiser to get an idea of the value of the property. Purchasing property at an auction can surely save a lot benefits for first-time buyers. However, there are many risks attached to this and one needs to act with due diligence before making any purchasing decision.