If you're a first time home buyer, you must have the idea by now that going through real estate listings and asking help from real estate agents aren't the only ways to getting a property. Yep, did you know that most expert real estate investors buy homes or properties at auctions? And with today's technology, you can even join property auctions right at the comfort of your home.
Wait, why would someone prefer to buy properties at auctions? According to an article by Investopedia, "Auctions offer a first chance to snap up certain properties, so in theory, some of the best properties get purchased at auctions. Also, because of the extra risk involved and because fewer people may be interested in the property than if it were available through traditional channels, prices can be lower."
Right, so if you're quite caught up with work and don't have the time to travel, here are some effective strategies to win online property auctions by Housingwire:
Do have a strategy before the auction.
Better ask yourself these questions first - do you plan to buy and flip or just buy and have it rented? Do you prefer investing in a lot of cheap-priced houses or just a few expensive properties? When you have a strategy in advance, your chances of achieving your real estate investment goals will likely increase as well.
Due Diligence
Always spend time to check out the properties thoroughly - including the housing market and neighborhood conditions.
Have Your Financing Ready
Most online property auctions require cash or cashier's check. Additionally, in order to participate in auctions, a deposit will be required, and even more cash deposit if your bid is winning. So without the capital needed to conclude your purchase, you could still lose the deal.
Stick To Your Price
Always remember to have the self-discipline to stop bidding when the price is just too much eventhough you might find yourself caught up with too much excitement.
Stay Until the Auction Ends
Most bidders wait until the very last second to win the deal and some auction sites even extend their bidding periods so anyone can still counter. So be sure to stay until the very end of the auction to protect your bid.
