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553097-56516-30Contrary to popular belief, real estate auctions are actually quite simple to carry out, and prove advantageous to the seller as well as the buyer. Until a few years ago, the only way to sell a home was through a foreclosure sale, and this was a very lengthy process and it also involved paying a large amount of commission (around 10% of the value of the home) to the real estate agent who carried out the sale. Auctions soon came into public notice, and have been growing at a steady rate ever since.

A home seller will find an auction useful because the process is very quick. Moreover, the popular misconception that an auctioned off home will sell for a very low price has slowly been eradicated as well. The seller can set a minimum price that he expects for the home and then invite bids, and in most cases he will be presented with a price that is far greater than what he expected in the first place. Additionally, the sales commission that needs to be paid to agents is also absent in this case, and the seller really does not have to do much more than simply be present at the auction, and at open houses for potential buyers to see the home.

 

mortgage-brokerReal estate auctions have seen a dramatic growth in recent years, in the United States. The advantages that an auction has, like a quick and an efficient way of getting cheap properties, has made it a preferred mode of buying and selling real estate. According to 2004 data, land and agricultural real estate witnessed the fastest rate of growth in sale through auctions (14.7%), followed by residential and commercial real estate with a growth of 14.1% and 11.1% respectively.
Successful Bidding Tips

Research
Gather as much information as you can about the property you are interested in buying. For example, get specific information like the size, amenities, location, and the opening bid. Then, research the area in which the property is located. Find out about the benefits of living there and its drawbacks, and compare the prices in that location as compared to those in the other parts of the city or town. Also, look at properties similar to the one you are planning to buy. This will help you to evaluate the property against your needs, and also plan the bidding strategy.

Attend Local Auctions
Attending local auctions will help you to better understand the value of the property in that area, and will also provide you an idea of how an auction is conducted. Observe who all attend the event, and how they bid. You may be up against the same people when you plan to do so, and hence, knowing their bidding pattern may give you an edge.

Set your Budget
Real estate investments involve huge financial transactions. Hence, it is very important to arrange your budget well before the vendue date. If possible, set an uneven bidding limit. For example, instead of setting the limit at USD 610,000 keep it at USD 611,000. Sometimes, a bid higher by USD 500 might help you to outbid your fellow bidder and win the auction. While deciding on the budget, take into consideration extra costs like stamp duty, legal expenses, and the fees of realtors or other agents that you may employ to help you with the purchase.

Focus on the Legalities
It is best to be clear about legal issues in case of real estate. Try to read through all the paperwork related to the property. Get your attorney to go through the contract of sale. Contact the agent beforehand and get a copy of the related documentation. In case of any confusion, get the agent to clear your doubts. If possible, also get the building and pest inspections done for the property before the day of the auction.

Be a Confident Bidder
Although, most bidders shy away from being the first one to raise their voice, for an auctioneer, the person who starts with the bidding process always comes across as one who is genuinely interested in buying the property. Such a person has an edge over the others in case the property does not reach its estimated value through bidding. In case there is a possibility of negotiation, an auctioneer may always turn to those, he thinks are seriously interested. It is very important to verify that the contract for sale obtained by you, is the same one being used on the day of the vendue. Also, be careful about any recent changes in the contract.

Houseauction-wideDuring auctions you can experience a great swing of emotions which can only which one can only experience by participating in these professional traditional or online real estate auctions.

By this you are not only exposed to an amazing world where you can practically purchase any kind of property that fits your budget but also achieve great savings and a secure transaction, and allows you to shop anonymously until you're ready to buy.

To help those who are new to online real estate auctions let me give you some tricks and tips, which will help you choose the property that you have been waiting for so long.

1. Find what the property is worth and the amount you plan to pay.

When using auctions do some research regarding sales or maybe talk to agents, moreover explore the neighborhood and talk to neighbors.

With the help of this research, you can set a price limit for yourself and over and above stick to it. Once a bid is set never bid above the amount you set for yourself. Also some people like to avoid setting bid limits at a round number.

2. Know your (online) auction company

It is utmost important to know the property market that you wish to buy, it's a good idea to investigate the real estate auction or online real estate auction agent who would conduct the auction. Every auctioneer has a different modus operandi, but several have their own particular characteristics or style. You can attend auctions or browse through those of many online auctions, which will give you an idea of how you can achieve your dream house.

3. Thoroughly check the property and the documentation.

Before you pen the deal at a real estate auction or online only auctions always check the contract of sales with your lawyer before the auction day. You also can speak to your mortgage broker or lender to organize your finance for a trouble free sale procedure. Many mortgage institutions would give you a pre-approved loan approval before the auction permitting you to place your bid at a particular value.

Also ensure that a professional pest and building is conducted on the land prior to the auction as this is small price that you may want to pay for peace of mind.

4. Ask for help of necessary

If you aren't comfortable with the pressure of bidding at real estate auction or online real estate auctions, take help of a buddy or professional. Hiring a real estate agent is worth their professional charge as you are sure that they won't get carried away and let the heart rule their brains.

5. Discuss terms prior to the real estate or online auctions

In property deals all is negotiable, it not that one always get what they desire. This also true for an only online auctions or on site auctions, although many folks don't realize this and assume that they are bound to the terms and conditions set by the vendors or agents. You might want to adjust the terms, settlement, or the amount of deposits, which might be included. But in case you wish to alter the conditions in the sale's contract then you ought to do it prior to the auction and not after the bidding.

The list of tips and tricks are never ending but these are few, www.freedommentor.com can help you get that dream property of yours. So why wait, happy bidding at real estate auctions or online real estate auctions.