OfflineHas or does anyone use the online real estate auctions? They seem to be popping up all over and I am wondering if any good deals have been found using this method. If so, what to look for, which ones, etc.
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You don't start learning until after you know it all!
Online auctions, just like any other auction are fast paced, so you better do your homework on the property. Make sure you know what repairs are needed,
how much deposit, buyer's premium, & closing terms before bidding.
We have bought properties at county auctions, private auctions, & even REDC
auctions, which also does an online process. Buyer's premiums are usually 5% to 10% of the purchase price. REDC now has you pay for the property in full at the time of the auction if it is $ 25K or less. County auctions must be paid in full by close of business & you only get a certificate of sale, so there is no warranty deed.
Thank you for info. Nice to be reminded of what to remember.
Another point to consider when buying at any auction is what you are actually getting with the winning bid. Some REO auctions ( i.e. Williams & Williams) convey a clear title to the property with no liens attached. Other auctions (sheriff's sales on the courthouse steps) clearly state that the sale comes subject to existing liens. Liens such as federal tax liens, mechanic's liens, etc.. may come attached to the property. Just be sure to check out all the information about the terms of the auction before bidding. If you've never been to an auction, you'll be surprised at how fast things happen. It's a good idea to attend several first just to observe. Auctions are also a great place to meet cash buyers to put on your list.
Tom