Some motivated sellers list their properties in online auctions. This often leads to bidding wars, with the homeowner getting a higher price for their property than they would through negotiations in a traditional sale. As a potential buyer, you can view numerous properties at once and set your own purchase price, ensuring you don’t go over budget. To prepare, below is a brief overview of the process.  

Find the Crucial Information 

Although you might get caught up in looking at pictures of properties, don’t forget to read the fine print for each real estate listing. There, you’ll find a property’s exact dimensions as well as the deposit amount and how to register to become a bidder. There should also be information regarding any contingencies. For example, if the home is valued below the winning bid, you can negotiate the price or back out of the sale. 

Know That Financing Requirements Vary

The listing will also include how the buyer is expected to finance the home. While some sellers who conduct online auctions allow for a mortgage to cover the cost, others might require cash to close the deal. If you choose to get a mortgage, the seller might require pre-approval for the loan to expedite the process and ensure that the deal doesn’t fall through. 

Don’t Be Alarmed by Low Starting Bids

If the opening bid for a house seems particularly low, don’t automatically assume there is something wrong with the property. The opening price could be only 50 to 75 percent of the home’s value. This is because the seller expects to receive multiple offers, thereby raising the price to meet or exceed the actual value.

If you are looking to buy a home or sell property, contact our team at Greenways Real Estate & Auction for help. With offices in Covington and White Sulphur Springs, VA, we are known throughout the state as well as West Virginia for helping facilitate online auctions for sellers. We also have an impressive list of properties to choose from for buyers. Call (540) 962-1155 to understand why you should Let Greenways Do It! Visit us online to browse the listings, text (540) 698-0883 for more information, and check out our Facebook for real estate auction announcements.