Winning an online auction may be easier said than done. While it sure is easy to bid from home, it can be easy to get caught up, caught off guard, or come unprepared and miss out! Here are some steps you can practice to maximize success when bidding in an online property auction. Keep in mind, these strategies can be applied to other online auctions!
Have a Sound Investment Strategy
Think about a few important things: What is your intended use of the property? Is it for your family to live in, or is it to flip and resell? Will this be an investment as a second property that you hope to rent and make money off of? You don’t just want to win the auction for the sake of winning – make sure the property you bid on will be a useful and worthy investment that fulfills a need.
Research, Research, Research
Look into everything. You can never be too thorough! Find out the requirements, rules and expectations of the auction house, your state’s property laws, and any fees you may incur. Make sure you make an account beforehand, so that you’re not hung up trying to register and verify your information the day of the auction. Research the finer details of the property you’re interested in – see what the auction house lists, but also dig in and see what else you can find! Look for additional photographs, information about the area, etc. Researching ahead of time also helps you come equipped with a bidding strategy and get your finances in order – what do similar housing market prices look like? And so on.
Log On With Your Financing in Place
Once you’ve done your own research, you will be able to have a solid idea of what you are looking to bid, what you can afford to bid, and how much the end costs will be once you win! This is why it is so important to know what additional costs you will incur. Come the day of ready. Know the buyer’s premium, the means of payment accepted (Cash? Credit? Check?), if there is a deposit required, and if you’re financing, have your debt in order and make sure your credit score is up to par for lending.
Know Your Price – And Stick to It!
Bidding is exciting! There is a thrill to bidding at auctions, but make sure you keep your wits about you and don’t get caught up in the thrill of the chase. If you’ve followed our advice until now, you’ll know exactly how much you can afford to spend, so stick to your guns! You may be tempted to fall into a bidding war, but in order to be successful you have to have self-control. Winning an auction requires strategy and a good amount of self-discipline.
Watch the Clock
Be sure to know when the auction closes, and stay tuned to the clock. Some experienced bidders like to swoop in at the end of an online auction and seal the deal. Stay alert and stay actively online throughout the entire auction so you can save your best bid for last, if needed – and hopefully walk away a winner!