Online Property Auction: 4 Steps Towards Preparation

If you're thinking about participating in an online property auction, you are about to take your first steps into an interesting and exciting world. Many an individual has been in your position before, only to go on to find fantastic deals on houses they may not have otherwise been able to afford. If you're getting into the game for the purposes of making a profit, there is a history there as well. Many people have left their jobs in exchange for buying and selling homes for a tidy profit. The risks are there and there is no safety net, but for the adventurous and wise, it can be a golden chance to make some real money. Here are four steps you need to take as you prepare.

Find a Good Site

Millions, if not billions of dollars of real estate has been sold in the online property auction world. But this doesn't mean that every site was created equally. Make sure you go through a trusted auction site that has some history behind it. You are undertaking enough risk by putting up your money for an investment that has no clear through-point. Don't compound that risk by giving your financial information to a site that seems shady.

Know the Policies

Even if you have used one online property auction site, don't assume that another will have the same rules and processes. Take the time to familiarize yourself with the fine print. Make sure you know whether or not any bids you make will be viewed as a legally binding contract. Know if the individual auctions have set start and end times, or if other factors determine when they close. The more you know about the policies, the better you'll be able to tailor your strategy.

Know What You're Bidding On

It wouldn't seem as though this needs to be said, but you might be surprised at the number of people who bid on properties without knowing exactly what they are. Is that a house or a condominium? Is it is a condo or is it a timeshare? Look at the deeds carefully, so you know exactly what you'll have the rights to, should you place the winning bid. Are you buying the house outright, or merely the right to put down the first payment? These things are handled differently with various sales, so don't ever assume.

Research the Seller

Just as not every online property auction site was created equally, nor was every seller. Avoid getting into the middle of bad transactions by doing some basic research. Check their user rating, look at their feedback, and—if it is a company—give them a spin through Google to see what you're dealing with.