Must-See-Homes
Must-See-Homes.com is a Personal website of
Deborah Elliott Realtor Agent of Charles Rutenberg Realty631 S Orlando AveWinter Park Fl 32789(352) 408-3868A1LandLady@Gmail.com
REAL ESTATE AUCTIONS
Online real estate auctions for homes, vacant lots, acreage, and even commercial properties often do not work the way most of us traditionally think auctions work.Most are not Absolute Auctions, where the highest bidder wins regardless of the final price. Instead, they are often Reserve Auctions, meaning the seller can reject all bids if they don't meet the amount the seller is looking for.
That’s why you’ll sometimes see the same property come up for auction week after week or month after month.
If you find a property you want as an investment and you know what you’re willing to pay, follow the property and consider placing a bid every time it comes up. Even if your bid isn't what the seller initially wants, the algorithm and bidding history may eventually show the seller that your offer is their best option.
Read the Rules—Every Time
Before bidding, thoroughly read the auction terms and conditions. Every auction can be different, and the fine print matters.
Pay particular attention to:
Technology fees and buyer’s premiumsOutstanding liens that may not be cleared at closingWhether you could be responsible for evicting a previous owner or occupantExisting leases that you may be required to honorWhether financing is permitted or the purchase must be cashTitle insurance availability and any limitationsBuyer-side closing costs, which can sometimes be surprisingly highThe Bottom Line
Don’t get overly excited, and don’t become emotionally attached to the property.
Most importantly, check your ego.
Winning an auction at any cost may feel like a victory in the moment, but it may not be the win you think it is once you add up the fees, liabilities, financing, repairs, and other obligations.
Know your numbers. Know your limits. And be willing to walk away.
That’s why you’ll sometimes see the same property come up for auction week after week or month after month.
If you find a property you want as an investment and you know what you’re willing to pay, follow the property and consider placing a bid every time it comes up. Even if your bid isn't what the seller initially wants, the algorithm and bidding history may eventually show the seller that your offer is their best option.
Read the Rules—Every Time
Before bidding, thoroughly read the auction terms and conditions. Every auction can be different, and the fine print matters.
Pay particular attention to:
Technology fees and buyer’s premiumsOutstanding liens that may not be cleared at closingWhether you could be responsible for evicting a previous owner or occupantExisting leases that you may be required to honorWhether financing is permitted or the purchase must be cashTitle insurance availability and any limitationsBuyer-side closing costs, which can sometimes be surprisingly highThe Bottom Line
Don’t get overly excited, and don’t become emotionally attached to the property.
Most importantly, check your ego.
Winning an auction at any cost may feel like a victory in the moment, but it may not be the win you think it is once you add up the fees, liabilities, financing, repairs, and other obligations.
Know your numbers. Know your limits. And be willing to walk away.