There is a recent trend of growing popularity of online real estate auctions and not only are the investors looking for commercial assets or distressed properties but individuals are also looking forward to buying auction homes. The post-housing crisis foreclosure is gradually seen to trickle down and this is why the online auctions are gaming momentum. More and more homebuyers are looking forward to buying their primary residence from a foreclosed home being sold in an auction. With the tough competition in the market, how do you maximize the chances of winning an auction? Read on.
Before the process of auction
In case you seem to be interested in purchasing a property at an online auction, few of the most vital steps need to be taken before the day of auction. If you can lay the groundwork just on time, this can boost your chances of winning.
- Set a strategy for investment: Before going into the auction, know exactly what you want to achieve and what your intention is about purchasing real estate. Set a clear goal in front of you.
- Line up your finances: When you win the auction, in what way will you pay for the property? There are many auction sites which don’t offer financing and this means that they want cash from you. You may even require few important documents too.
- Create an account with the site: Suppose you’re working with a company like Hudson and Marshall, make sure you create an account with their site so that you can easily track properties.
- Review the title report: Obtain a preliminary title report on any auction home in which you’re interested and find out who owns the title and whether or not it is right to purchase it. Watch out for tax liens or secondary liens.
- Register for the auction: Once you’re done with the inspection and research, line up your finances and register for each property which interests you.
During the process of auction
On the day of auction, log on to your account and navigate to only those real estate properties for which you have registered. Verify the deals on the auction and confirm the next bid as your bid amount. You may check out if Pre-auction bid is available as there are few bidders who allow. Majority of the bidders participate in a live window where they either offer their highest bid in the very beginning to scare off the other bidders or they wait till the end of time to see what the other investors are offering.
Have a clear understanding of what you are willing to bid on a particular property as it depends on your investment goal. With the progress of the auction, set the maximum amount which you can pay and stick to it. Try your best to keep emotions away as the auction draws closer.
So, if you’re eager to win at a real estate auction, follow the above mentioned tips and strategies shared by experts. Get the best property according to your wish and emerge successful.