As you begin to explore your investment opportunities, it is important, as Jason Hartman recommends, to fully investigate your options. In light of the rapid change the housing market has experienced, it is no wonder that it too has gone online.
Though real estate auctions vary somewhat, there are a few things that each has in common. Often, they sell foreclosed homes, though this is changing as the housing market experiences a bit of a recovery. Like most auctions, all sales are final. However, in cases of foreclosure, the initial owner may have a period in which they can take back rights to the property, thereby voiding the online auction purchase.
Online auction purchases, like traditional auctions, divide property into three categories—commercial, residential, and luxury homes. After registering for the auction on the site that is hosting (it is usually free), the auction site provides a pre-auction bidding period. During this time, a bidder can place a limited number of bids on properties he or she is interested in—if the seller is satisfied, the property never actually goes to auction.
Otherwise, the online portion of the auction begins. From your home or office computer, you are able to place a bid. Like a traditional auction, there are minimum bid requirements and extendable ending dates and times to prevent last minute bidding that becomes aggressive.
Should you, as a bidder, win an auction, you receive both a phone call and an email to confirm your purchase. Because business is conducted online, you’ll likely be required to make an initial deposit on the property. Just like that, you’ve purchased a piece of real estate for your home or business.
Online real estate auctions are gaining popularity because they offer extreme ease of use for interested investors. They create a more level playing field and provide flexibility in payment options that appeal to both buyer and seller. For many, this ability to use technology, even in real estate investments represents, the future of real estate.
For others, this step may seem to go too far—more tactile individuals like the opportunity to view and explore the property in person. The experience of a real estate auction itself is also an experience that many find worthwhile. Still, the future of most things lies in the ability to explore and take advantage of new technologies. Real estate is proving to be no different.(http://www.flickr.com/photos/steevithak/6348869800/)
The Young Wealth Team