Property Auctions Online - The Information You Need
Attending property auctions online can be a great way to purchase a home that you otherwise could not afford. However, here are some things to consider before making your investment.
Sheriff's Sales and Private Sales
Before you start bidding on property auctions online, you need to know who is holding the sale. Some are so-called "sheriff's sales" that are conducted by the government. These are usually houses that have been repossessed by the government due to issues with unpaid back taxes. The government's primary concern is getting those taxes paid for. If it's a privately run sale (usually by a mortgage company), the house was probably foreclosed upon due to an unpaid mortgage. The lender is trying to recoup as much of their loss as possible.
Do Your Research
Basic information about the houses going up for sale should be available for several weeks prior to the sale going live. This is your chance to do your research. Conventional wisdom says not to buy a house you haven't seen in person and, if possible, this is good advice to follow. A house can look quite different in pictures compared with how it looks up close. It may not be possible to get a home inspector onto the premises for a full analysis, but you should do everything you can to get as much information as you can. Property auctions online may not work quite the same as buying a house privately, but the same precautions apply.
Don't Go Over Budget
It's tempting to get caught up in the excitement of property auctions online. You go in thinking you won't pay a dime over $80,000. Before you know it, you're justifying a $110,000 bid. If you can afford to go this far over budget, that's one thing, but most people put themselves in a precarious position when they extend themselves this far beyond their means. Pick a number ahead of time and stick to it. Even if you lose out to another bidder, all hope may not be lost. They may not be able to come up with the money, in which case you might be offered the chance to buy at your price.
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