Does anyone have advice on online house auctions ? Can someone tell me how online auctions work? Help??

Question

Can anyone give advice or tell me the does and don't on online house auctions? Is the auction actually online or will I have to go to city hall for the auction? Will I see photos of the inside of the house before bidding? If I am in Louisiana and go to another state that I plan on moving to so that I can bib on a house will I be able to do so being that I have an out of state I.D.?

Answer 1

It depends on the auction, and each auction should have the terms of the auction listed somewhere for you to read and agree to before participating. For example HUD auctions work far differently than others and allow for you to have a realtor to help you without it costing you anything. Obviously you would have to be an idiot to bid on anything blindly, but most online auctions allow time for you to view the property before bidding is complete, and often have special open houses for that purpose (at least that is what we did when I was an apprentice auctioneer). In my experience the online auction was merely and additional option to the live auction allowing the online user to participate. Real estate auctions aren't done in the same fast bidding as other auctions for the most part, allowing a little extra time for people to valuate the property versus the other bids. The most common terms are to be prepared to put down 10% on the day of the auction and fully closing within 30 days. Typically all the due diligence work has already been completed. Bottom line advice ... get your own realtor to represent you in the purchase.

Answer 2

You may want a Realtor to help you. He would be paid by the seller so it doesn't cost you. Either way there are a couple things to understand. First they all charge a buyer's premium and that's added to the final bid. Second, and most importantly, is make sure they have an inspection period and one that permits you to cancel if you don't like the inspection. And are you going to buy and hold or are you planning to flip? If it's the latter make sure you know the ARV - after repair value.

Answer 3

There are different methods and procedures used by each auction house.



In online bidding you would be required to register with the online auction. You would need to follow the procedures of registration. In most cases you would be required to be pre-approved for a mortgage loan and provide the lender that you are pre-approved with.



Though the auction company is not able to get any information from this mortgage lender, they are able to see if they are a a registered licensed mortgage lender in the state in which you would want to bid. If you are not pre-approved, you would not be abel to bid on the propertied offered.





There are several online auction sites you might consider using.



You would need to find out the procedures, method of payment, when and how soon you would be required to complete the transaction.



Some auctions require you to pay an additional fee above the price of the house.



The online auctions I have use, have an opening minimum bid. There is also a minimum bid to increase the bid.



If the minimum acceptable bid is not made the property is not sold.



If you are bidding for property online there would be no need to go to city hall for any reason.



Normally if you are gonna bid on a property, you would normally want to visible view the property. Normally you would find pictures of the property you would bid on. these pictures would show you the rooms of the house, however, you would not have any idea of the layout. unless a schematic of the property is provided, which is not normally provided.



In moving to another city in another state, you would want to learn the city and the areas of the city that is not crime or drug infested. What might look good in the daylight hours could be a nightmare at night.



If you are at a live auction you would be required to purchase a bid card. If you are a successful bidder, the cost of your bid card would be deducted from your did price. If you are not a successful bidder, the price of your bid card would be returned to you.



The easiest means of finding out about potential auction house would be to request a list of properties they have for sale and the bidding procedures. The auction company would offer a pamphlet listing all properties for sale and their procedures in order for you to bid.



I hope this has been of some benefit to you, good luck.





"FIGHT ON"

Answer 4

You would be a fool to bid blind on property,you need to view the property, get it inspected before the auction as you need to pay 10% immediately and normally the rest within a week.

You need to read the legal pack of each property you intend to bid on before the auction and bidding is exactly the same as any other online auction, property auctions you generally need to register prior to the auction to be able to bid

Answer 5

advice I give you is from the many "house flipping" TV shows - don't buy w/o seeing at least the outside and preferably the interior also, and even then, you could wind up with very expensive repairs