Make the Most of Online Real Estate Auctions
Oct 17, 2005, 16:56
Online real estate auctions are becoming more popular for several reasons.
The economy is becoming more global, people are more mobile, and online auctions
are a clearinghouse for many things. Add it all together and you’ll see why you
have options to bid on everything from a one-bedroom condo to a multi-family
apartment building online.
Real estate auctions have been vital for many generations with foreclosure
and death as the main two reasons for holding a real estate auction. Whether the
owner owes back taxes that have forced a foreclosure or a lender is foreclosing
because of non-payment, a real estate auction is one way for those creditors to
get at least some of their money back rather than forfeiting everything that’s
owed. And real estate auctions mean the transaction is completed quickly, rather
than waiting for a buyer to come along.
But how do you effectively search for online real estate auctions? And how do
you gain the confidence needed to actually make a purchase of real estate at
online auctions? Searching for online real estate auctions is pretty simple and
you’ll find tons of options. Even eBay – where most people think they’ll find
clocks, books and other small items – has real estate on auction.
There have been some really interesting pieces of property for sale at real
estate online auctions, including a mental hospital, houses that were supposedly
haunted and cabins in rustic settings.
But how do you weed through the online real estate offerings to find the good
property? There are some rules of thumb that will help you find quality
First, make arrangements to see the property. This is especially true if the
online real estate auction calls for a large investment, but is a good rule for
any property. If you can’t make the trip to see the property in person, call on
someone in the area to be your eyes. A real estate agent is a good person to
handle this task as they usually have the ability to take and send digital
photographs, and they’re probably already familiar with property in the area.
Do some research on your own. Before you make a bid at an online real estate
auction, take time to see what property in the area is selling for. If this
isn’t an area that you’re already familiar with, this step is vital. While a
small house on a lot at the edge of San Francisco may very well be worth
hundreds of thousands of dollars, that same kind of house on a lot in a rural
community in the Midwest won’t be worth nearly as much. And if you’re familiar
with property values in San Francisco, you need to get some perspective before
you determine your maximum bid for real estate auction property in another part
of the country.
Online real estate auctions are a great way to find excellent deals on
property, whether you’re looking for investments or planning a move. But
remember that these online auctions are no different that every other. There’s
the potential that you’re buying from a less-than-scrupulous seller, that the
property isn’t what it’s purported to be, and that you could become the victim
of a scam. Bidding on real estate auctions through reputable and well-known
auction sites is one way to avoid those problems since many offer mediation for
problems that arise.
Finding great online real estate auction deals is possible. The key is to use
your own common sense as you’re looking for online real estate auctions, and to
keep your grandmother’s advice in mind – if it sounds too good to be true, it
© Copyright 2004 by