How to Navigate Online Real Estate Auctions in the Capital Region
Online real estate auctions are one of the internet’s greatest inventions. They allow bidding on Capital Region houses to be done remotely and all from your computer desk.
If you’ve never bought a home or haven’t bought one in over 20 years, the online real estate auctions will be an entirely new experience for you. Even if you’ve used one in the past, there still may be a lot you don’t know about them. Check out our guide to online real estate auctions in the Capital Region and get started today.
How Online Real Estate Auctions Work
People have been holding auctions for centuries. In the past decade, they’ve evolved so that being in person is no longer an issue. In the past, there have been two types of arrangements at real estate auctions:
- Absolute: The highest bidder will take home the prize, even if he or she bid at a price that is below the lowball.
- Minimum: The seller has the option to reject any options that he or she feels is too low or does not meet other expectations.
In most auctions, negotiation is the name of the game. Both buyers and sellers have a little more room to make demands while avoiding some of the biggest negotiating headaches. You don’t have to deal with contingencies or other issues. The property goes to the most willing bidder, usually the one with the highest offer.
Auctions take out all the middle ground of buying a home. Once your bid is accepted, you will not have a chance to dispute your bid. Home inspections and appraisals will not be complete. The home is completely sold as is. In some cases, this is great. In others, you may be buying a property that has problems you can’t even imagine.
Overall though, if you’re ready to give up all negotiations and buy right away, an online auction might be the best option for you – especially if you’re tired of paperwork.
Tips for Success
Follow these tips to be successful at online real estate auctions in the Capital Region:
- Try to look at the property in person ahead of time
- Analyze previous sells and disclosures to determine a good price
- Define your spending limit to avoid getting swept in the auction process and bidding more than you can afford
- Line up your loan before the auction date so you will be sure to close the deal
Before the Auction
In live auctions, all bids must be made when the auction starts, but online real estate auctions are a little different. If you find a property that you love, you can make what is called a pre-auction bid before the property even comes to the market.
If the seller likes your bid, then the property is yours. There will be no contingencies, and you will have your property right away, assuming your loan comes through.
After the Auction
Sometimes, the seller of an adjusted auction doesn’t get the price he or she wanted for the property. In those cases, the property goes back to the seller.
If you’re still interested in that property, you can contact the auctioneer and ask him or her to connect you to the seller. From there, you and the seller can negotiate on a price, and the seller can unload the unwanted property. It’s a better deal for the seller, rather than paying property taxes on it.
Online real estate auctions aren’t just a phase. They’re here to stay, and if you’re buying a Capital Region home, an auction may be right for you.