Real Estate Auctions – Knowing When to Bid at the Real Estate Auctions

For prospective home owners, the thought of spending hundreds of thousands of dollars on a new real estate build can seem overpowering. The alternative is to purchase a home at auction. Real estate auctions are set up by the lender to rid the bank of the burden of the piece of real estate that has been foreclosed upon. If the bank is not able to sell the foreclosure at a price they see fit, they will post the property for public auction.

Public real estate auctions are tricky, in that, the lender does not have to sell the home even if the bids are relatively high. The lender is in complete control of the home title and can choose whether or not to accept the highest bid during the auction. If the lender does not accept the bid, the auction will be for naught and the lender will retain ownership of the piece of real estate despite the auction.

For those trying to purchase a home through a real estate auction, it is best to be prepared for the home sale from the time you set foot on the property. There are five things every potential buyer will need to do in order to prepare for a real estate auction.

o Obtain all information. Many real estate auctions will require the home buyer to present some form of deposit or proof of lender approval at the time of sale. If the lender agrees to the price, and often a lender representative will be on site for the auction, the buyer will need to prove they have the financial means through which to pay for the home. The initial deposit required or proof of immediate lender approval is always a great item to have on hand.

o Take a shot or two. When walking through the home before the auction begins. Take a few pictures of any and all blemishes in the home. Make sure to look beyond the physical knick and scratches on the homes surface. With camera in hand, you are looking for things that may potentially cost many dollars to fix, not just a coat of paint.

o Check the comps. Before heading off to the real estate auction, make sure to check the comparable home prices in the area. If the homes in the area are selling for $150,000 and the bid on this home reaches that point, there is no sense in buying this home at auction. Real estate auctions are often held on homes that are dilapidated and in need of repair. If a home in good condition is selling for the same price as the auction of this home, you can find a better deal.

Real estate auctions are a quick and easy way to save thousands on the home sale price. When attending an auction with the real idea of buying a home, you will need to be prepared for the chance that our bid may actually be the one chosen. Obtaining pre approval for a home loan, walking the home for possible high priced fixes and comparing the house to homes in the area are the best ways to stay on top when the gavel hits the podium.

Real Estate Auctions

The real estate market has seen phenomenal growth globally. A lot of real estate deals are clinched through real estate auctions. A real estate auction is an effective method of selling real estate. It accelerates the entire process of marketing real estate that involves public sale of any property, through competitive bidding.

A real estate auction is generally a win-win proposition for the seller as well as the buyer. The seller has the advantage of showing of his/her property to many potential customers at a single instance. Since the entire process is generally quick, long term carrying costs like taxes can be avoided by the seller, which places them at an advantage. This benefit is not available in other conventional modes of marketing. If the seller is lucky enough or the property is really good, the buyer?s auction price can exceed the price of the negotiated sale. Real estate auctions are a great way to increase the visibility of a property for sale, as well. The seller stands to gain from all these factors.

The buyer, too, stands to gain from the process, because the properties are usually purchased at fair market value through the process of competitive bidding. Another important thing is that the buyer determines the ultimate price of the property. The buyers also have an easier time making a decision on the property and how much they want to pay, because they are usually provided with comprehensive information about the property before the auction begins.

Real estate agents/brokers can earn good commissions through real estate auctions. The entire marketing process is easier, because the realtors are offered a list of ready buyers. This in turn translates into saving of lots of money and time.

Real estate auctions have been popular for these very reasons. One can find extensive information on real estate auction through online resources. One can now bid online for property, thanks to Internet technology. You can also get comprehensive advice on real estate auctions through these online resources.

Online Real Estate Auction Has Become a Skyrocket

Sellers and real estate agents are struggling to get their properties noticed. It’s not surprising that more sellers are turning to creative ways to market their properties. One such creative strategy nowadays is online real estate auctions have become more popular than traditional real estate auctions. Online real estate auctions can certainly help you locate a great property, particularly in an area far from where you live. It helps a property stand out and that’s the goal in any marketing strategy. Another reason for Online Real Estate Auctions’ popularity is that it’s easier to bid than to write up a sales contract. All negotiation is automated and done online.

Online Real Estate Auctions have many advantages; they provide a great platform for you to sell your property. It minimizes the hassles of prospects visiting the house frequently at untimely hours as well as attracts only qualified buyers who are actually looking to buy a property. They get a better price for the property owner with minimal effort as they attract buyers from across the world. You decide the date and time of auction. The prospects can look at the details of the real estate like photographs etc. and can participate in the auction. Other option for purchasing real estate online is through bank auctions. Bank auctions are usually on foreclosed properties and can give you the opportunity to purchase real estate at a dramatically reduced price.

A live auction is still a great way to sell, an online auction is much easier to coordinate and less expensive, however, you have to be very careful and do your research before bidding on a property and definitely before executing a contract. A property you have never seen could be a potential nightmare, and there are several reasons for this. If you’re considering buying a property you can’t visit, it may be worth hiring someone in the local area, who’s familiar with real estate to check it out for you. Your representative needs to make sure the property is accessible, check the record of any leans, foreclosures, or title problems.

Online real estate auctions are not legally binding. A real estate transaction must be formally executed under the laws of the state where the property is located. An online auction can hook a buyer up with a seller, but they must still get together and work out a contract before the sale is final.

Be sure to use a reputable and well-known auction site. Before bidding in a real estate auction, read the auction site’s Terms of Service and any additional information they may have about real estate “auctions” on their site. This information can usually be found in the help or rules sections of the sites.

Finally, whether you have a property and are looking to sell of the property, but were scared about the hassles involved in it, or looking for a real estate to buy especially if you are seeking a real estate in an area far from where you live, Online Real Estate Auctions are the way out for you.

Open House Secrets Real Estate Agents Don’t Want You to Know

Open house is a process wherein a property will be sold to several people at the same time in order to get the best offer for the property. There are a lot of reasons why there are agents who want to conduct open houses, but there are also a few things that you need to know about it. In this article, we will be discussing the secrets that you need to know about open houses and how you can get the most out of it. Reading this article will ensure that you will be able to enjoy such transactions without having a hard time.

The first secret that you need to know about it is that the prices they are telling you may not be true. There are agents who will be telling you that another person is willing to buy the house for a much higher price, but in some cases, this is not true. It would be better if you are going to place your bid based on how you see the property and not based on what the agent says. Open houses are like auction for real estate, and you need to know the value of the property before you even get to it. This will ensure that you will get the best value for your money, and won’t be spending more than what you should.

There are also some agents who will do the opposite of telling you the highest bid. This would require better understand of the real estate property, because you won’t know when the other buyers have placed an offer that is higher than yours. This is the reason why it is very advisable for someone who gets into open houses to get an appraiser, an agent, or a realtor who can help him make a decision when buying a property.

It has been reported that at least 20% of all the sales that were made by professional real estate agents and realtors came from open houses, which means that 20% of the transactions that you will get into are open. This is the reason why you need to be aware of these things, and is why you should be familiar with this kind of transaction. You don’t have to spend a lot of time to learn more about it, because all you have to do is to determine the real value of the house that is being sold.