Six Tips for First Time Online Auction Buyers

Take a look around your neighborhood and increasingly you may see homes being sold through online auctions. The convenience, control, and unique opportunities are just a few reasons online auctions are growing in popularity.

For first time bidders, the auction process can be daunting. Here are six tips to successfully buying real estate through online auctions:

1. Create an Account

As a bidder, it’s important to get accurate and up-to-date auction information. Creating an account is the best way to find information and keep track of properties that you are interested in. Account holders are also granted special access to property documents and materials that regular viewers can’t see.

2. Review All Property Information

You don’t have to be a deal-making expert to master online auctions, but you do have to do your research. Each property page online provides a variety of information on the property itself, including due diligence, maps, floor plans, tax history, key dates, and other important materials. Be sure to carefully read and understand all of these documents before the auction date. Auction specialists educate themselves on each property so they can answer any questions you have efficiently and accurately. Do not hesitate to ask for any details or to clarify information.

3. Contact a Professional

It’s always a good idea to seek independent advice from a real estate professional or attorney. They will have the most expertise in assisting you through the online auction process, including real estate values and other financial aspects. They will also be able to advise you on what to offer when it comes time to bid.

4. Tour the Property

The ability to assess a property in the comfort of your own home is one of the benefits of online auctions, but personal, on-site inspection of the property is always recommended. This allows you to preview the entire home and review anything you deem necessary. You can also evaluate the community and neighborhood the property is located in. Auction specialists are always on site during previews to answer any questions you may have.

5. Have an Investment Strategy

Having an investment strategy is very important before going into an auction. Become familiar with the auction payment terms to ensure that you have the proper funds when it is required. Have your purchasing entity organized if you are not buying in your own name. If you prefer financing, make sure you qualify before the auction begins so you know where you stand with your budget.

6. Prepare to Bid

Once you’ve reviewed all the information on the property and lined up your funding, you need to register to bid. Registering is mandatory in order to place a bid in the online auction. During registration, you are required to place an authorization and hold on a major credit card. Allow the requisite time to complete registration to ensure your participation in the auction. Keep checking the details of the auction up until the auction begins so you don’t miss any changes.