In 2009, In the US, with foreclosures continuing to rise, home auctions were increasingly
drawing interest from home buyers who traditionally ceded that approach
to professional investors. For Canadians, it’s important to know how online home
auctions work, what kind of homes you’re likely to find and what you
might have to pay above the sale price, if they want to get bargains in the slowing real estate market in Canada.
When you try to look at the difference between paying too much for a piece of property and finding a good deal, the actual difference really isn't all that spectacular, even though it sounds simple enough. It essentially, in the end, comes down to how well a potential buyer can vet a property before a home auction takes place, as well as how they manage their overall bidding process during a sale's final hours. There are also some online home auction website options which contain features that makes this process a cinch, potentially resulting in some good bargains.
There are a few select home auction websites which provide their users with a multitude of details regarding specific properties, as well as easy access to those who are selling the properties themselves and tools to help manage the bidding process. However, there are other sites who provide significantly less than this, which can ultimately lead to users needing to either do their homework or end up getting a bad deal for what they thought was a good investment.
While home foreclosures are continuing to spike, the idea of a home auction is something else that is experiencing the same thing, especially from buyers who previously had not considered taking that step, leaving it instead in the hands of more professional investors. This makes it important to know how online home auctions exactly work, as well as what particular types of homes that you will find and the price that you may have to pay, even if it is higher than the actual sale price.
The type of home that you want to look for the most can affect which particular home auction website that you select. For instance, there are some websites that only feature homes that have been foreclosed, while others showcase properties that are either advertised by real estate agents or are owned by a particular bank. Other websites also allow for online home auctions as well.
Using these websites, individuals can search for properties by state, city, and/or ZIP code. They can then refine those results by details such as the number of bedrooms and bathrooms, price, and total square footage. These websites will also feature photos and even links to other websites which can provide even more details about a particular property, including ways that the property's seller can be contacted.
People who visit these websites also have the ability to save their findings for future reference, as well as setting up automatic bid increases for any properties that they come across. However, what sets many of these websites apart from most others are the different fees that they charge for the service that they provide, as well as how many homes they advertise at one time and how they operate the auctions themselves.
There are also many different types on online auction websites that hosts series of home auctions all across the United States. There are some searches conducted that can turn up thousands of properties, regardless of whether or not they are bank-owned, in multiple states. A vast majority of these websites will begin advertising home auctions approximately 30 days in advance of the actual start date, and they will even open some of the actual homes for a few days for any potential buyers to look through. Every home on a property, however, is sold on an "as-is" basis.
Organizers of these home auctions caution potential buyers to not purchase a home without looking at it first. They urge these individuals to do as much research as possible before making any kind of a commitment to purchase a particular property.
A majority of home auction websites requires people to create a profile, after which the company will place a 24-hour hold on an individual's credit card for a certain amount of money (this amount can differ depending on the website). If a user wins an auction, they are required to pay a premium percentage to the auction company.
Some of these auctions can last various amounts of time. It all depends on which particular website someone decides to go with to get what they want. These websites also generally extend the offer to users to practice things such as bidding and look up general tips regarding an auction before they dive right into the mix.
Before committing to using a home auction website, the Federal Trade Commission highly recommends that individuals take all of the proper steps to ensure that the website they are looking at is both reputable and legitimate. In addition, they caution against individuals sending these websites large amounts of money or volunteering their personal bank account information, as this could lead to potential scamming incidents.
Furthermore, it is also a good idea to have a property completely inspected, especially if it is being sold on an "as-is" basis. If this is not done beforehand, then whoever ends up purchasing the property will be solely responsible for making sure that it gets up-to-date.
Many experts recommend that buyers be the ones who will decide the maximum amount of money that they are willing to spend on one particular property and sticking with that amount. In order to see if a bid is truly getting out of hand, take the time to look up a certain property on various websites to obtain valued estimates, as well as showing homes that are comparable to the price that you are looking to spend.
The most important lesson to keep in mind is to not get your heart set too much on any one piece of property. Always bid and know what you are willing to pay the most without making it too personal.
Check out online real estate auction website:
In US: auction.com, realtybid.com
In Canada: bidwin.org