Real Estate Auctions
Make the Most of Online Real Estate Auctions
By Buyincomeproperty.com
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 property.

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 probably is.