Online bidding sites are becoming more and more popular as yet another option worth investigating when you are negotiating homes sales or looking into an investment in rental property.
In a nutshell, the saving wise benefits are derived from the opportunity that you have by being exposed to a potentially larger (and often more diverse) list of properties that are available.
(Similarly, if you are wanting to sell a property, online bidding gives you greater exposure to a vaster net of potential buyers, thereby increasing the reality of a sale.)
Remember that the more exposure that you have to properties for sale, and visa versa of course, the greater your likelihood that you'll have of clinching the best deal.
ONLINE BIDDING SITES
Sadly, particularly in recent years, there are more and more homeowners who need to sell their properties because of their own financial circumstances.
If the homeowner 's properties is still owned by the bank, then they will have given the bank permission to sell their mortgaged property on their behalf.
The bank will have given the homeowner an anticipated or realistic selling price for their particular property.
A potential offer to purchase can then either be accepted or refused by the homeowner, subject to bank's agreement.
You will have access to repossessed properties that the banks have "taken back" from homeowners because the owners have defaulted on paying their monthly installments.
If you are looking out for investment in rental property then online auctions, can often yield value for money investment properties since you generally don't need to pay transfer costs.
A repossessed property can often also be a good investment, because the bank may be willing to accept an offer that is below the current market value, so that they are able to recoup their outstanding money and cover their costs.
Since the advent of more and more reputable online bidding auctions sites for properties, prospective buyers now have exposure and access to properties that were previously generally only available to auction houses, financial institutions or estate agents.
You will find that you are now in a position to bid for properties that financial institutions and banks have listed because they need a "quick sale" - repossessed properties, divorce settlement properties, bankruptcy and deceased estates.
How it works - the preparation:
Make sure that you have physically gone to view and inspect the property that you are hoping to make a bid on.
Make sure that you know what the current market related value for a similar property, in the same area would currently sell for.
(Submit a reasonable offer and not necessarily a ridiculously low offer. Remember that the banks often have a non-negotiable reserve price because they still need to recoup their money too.)
When it comes to financing investment properties, make sure you have considered your credit score rating chart and that you will qualify for the loan amount and that you have a big enough deposit readily available.
Some online bidding auction sites may allow you to see what other potential buyers have bid for the same property.
(You may also want to hone your negotiating skills...)
Once you have chosen your property from the online bidding sites:
- you will make an online offer to purchase
- if the bank or financial institutions accepts the offer, you will need to send through a formal Offer to Purchase
- the bank will counter sign your offer and you will need to submit proof of finance (usually within 14 - 21 days)
To extend your saving wise and financial education, don't be reluctant to take a look at techno-wise online bidding sites options.
You never know, you may just snap up your dream home and an affordable investment in rental property at a fraction of the expected cost.