Online property auctions are one of the best sources and avenues used by investors today. Unfortunately, not everyone is well aware and skilled to participate in one which can become a disadvantage. To avoid that from happening, Singerviellesales.com came up with the following list of do’s and don’ts to guide you along.
Do take time to study. Like a regular auction, ample preparation shall be needed even if majority of transactions shall happen online. For one, there is the need to research on the facts and information regarding the properties being auctioned off.
Don’t forget to run a background check. The sellers and the site must be verified. Are they legit? Is it legal? How long has it been in the business? Do experts and other investors recommend it? Run a background check for safety and security purposes.
Do have the property surveyed. Hire a chartered surveyor to examine the asset pre-bidding. The day of the auction shall be announced so there should be ample time to do this. Never close on an investment without visiting it and validating facts.
Don’t get an asset with a lien on it. The reasons are pretty obvious. A property used as a lien, one where there is a legal claim on it, is very risky. There is a big chance that it can be foreclosed and the investment deemed futile and a loss.
Do have the value assessed. This is one of the things that a surveyor is hired for. Does the seller’s assessment on the fair market value come close with the starting bid? No not exactly. However, this data is still important to make sure that one does not overbid and pay up for more than what the asset is worth.
Don’t forget about ongoing costs. These refer to the repairs and maintenance expenses spent on the regular in order to ensure functionality and upkeep. This is not part of the market value and shall be borne by the buyer. A high level of these is very detrimental and costly in the long run even if buying the property came in cheap.
Do check the terms and procedures. Not all online property auctions are the same. They can be similar but several factors can be different particularly in matters of processes and rules. It is best to take a look at the site first, read and scrutinize. Don’t hesitate to pop a question too if there is any. These websites come with contact details for that.