In this digital age with so much access to information, consumers are used to—and even demand—convenient shopping. We buy groceries, gifts, flowers and even clothes online. Many people prefer the online shopping experience to queues, searching for parking and scouring shelves for what they need.
It might come as a surprise to you that some people even prefer buying larger investments such as properties online. Attending a property auctiononline has become a fun way for many potential homeowners to find their dream homes. Will you too?
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Online Property Auctions – Easier Than You Think
While buying groceries or your next favourite gadget is as simple as a few mouse clicks, trying your hand at an online property auction can be a little more complex. There are a few tips that you should consider before logging on.
Ensure You Can Afford the Purchase
Bidding at property auctions should only be done if you’re serious about the purchase. Ensure you can afford the house you’re going to bid on and make sure that you have your financial plans in order.
For starters, enquire about deposits and commission payments upfront. This will ensure that you have the required funds available already.
Prequalification with Banks or Bond Originators
You’ll have to be prequalified before you sign up for an online property auction. Whether you choose a bank or a loan originator, they can assist you with all the calculations to determine your affordability. They will check your credit score and current monthly repayments.
Tip: Where possible, settle all your smaller debts to free up extra funds for monthly repayments.
Research the Auction Process
When you sign up for the auction, do some extensive research on the auctioneering process. Ideally, you want to use an auction facility that has credibility. Ask as many questions as you need for clarity. You can even request a copy of the potential sale contract and familiarise yourself with its content.
Self protection tip: It might be a clever idea to consult an attorney to assist with understanding the fine print.
Request Permission to Attend Auctions as an Observer
As part of your research, ask to attend a couple of auctions as an observer. That way you’ll get a feel for how the system works. You can see what’s on offer and how different situations are approached. Be sure to ask questions to make the most of your learning curve.
Research the Potential Property
While you won’t be able to physically view the potential property, you can still do some research on it. Ask for a copy of the site diagram or property plans. If the particular property isn’t available for viewing before the auction, at least drive past it to get an idea of size and condition.
Tip: Use the digital resources to your benefit and research possible online photos and additional information regarding the property.
Now, before you start, share your intentions with the bank or loan originator you’re using. They’ll provide you with some additional tips to make your first online auction go done smoothly. Be sure to chat with friends, family or real estate agents to help you ease through the process. Getting your dream home might be easier than you think!