Be Prepared To Seal The Deal
Be absolutely sure of your bid strategy because if you secure the winning bid at an auction, theres no going back. That gavel coming down seals the deal and you will also be liable for outstanding municipal rates and levies, if the seller has fallen behind in their payments. Thats how property auctions work.
My Tips For Using Auction House Reviews
There are three things you need to be conscious of when you look at auction house reviews.
Tip 1: Be aware that feedback may include estate and letting agent reviews
Many property companies have estate agency branches and letting agents as well as their auction service. A company may have hundreds of reviews about those other services, and very few about their auction service.
Thereâs nothing wrong with that, but it just makes it tricky to find what people are really saying about their auction service.
Take Butters John Bee for example. Theyâre a large property company around Stoke-on-Trent, with numerous estate and letting agent branches. They also offer an auction service.
They have 1,000 Google reviews in the last year, with an average score of 4.8 â which is great! .
But itâs difficult to work through their reviews and find any feedback on their auction service.
It may be fair to assume their auction feedback would be great too… But just be wary when you make that assumption.
Try and dig as deep as you can, and find what customers are really saying about their auction service.
Tip 2: Take notice even if reviews are from buyers rather than sellers
Some auction houses have mountains of awful reviews from buyers. Theyâll often complain about high fees which werenât disclosed, or shady practices in concluding the auction.
As a seller, should you care?
In my opinion, you absolutely should.
Theyâre a huge red flag, and a sign you should probably stay away.
The 20 Best Home Buying Websites In 2022
Before you can buy your dream home, you need to find it. But where should you look? We’ve compiled a list of the best home buying websites so that you can quickly find ALL the houses for sale in your area and get a jumpstart on your search.
From the best house hunting websites like Zillow and Realtor.com to the top websites for real estate knowledge like Clever, our list will give you the tools and information you need to navigate every step of your home buying journey.
Ready to start house hunting? We can match you with the best realtors in your area. And, on eligible purchases, you could also earn a cash-back refund that saves you thousands when you buy your dream home!
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The Best Online Auction Websites For 2022
- Best for Real Estate: Auction.com
- Best for Auto: Copart
- Best for Luxury/Collector Items: Sothebys
- Best for Government Surplus Items: GSA Auctions
eBay is the best overall online auction website because its free for buyers, both seller and buyer have protections from fraud, and youre not restricted to just the United States. You can buy and sell on eBay from most countries.
Buyers and sellers from all over the world
Its free for buyers
Offers both seller’s and buyer’s protection
Seller’s fees arent uniform across categories
Final value fees can be as high as $750, depending on your category
Displays third-party advertisements and listings from other sellers on any eBay pageincluding your listing
Launched in 1995, eBay is one of the oldest and largest online auction platforms, with 142 million active buyers worldwide. Its the best overall online auction website because buyers dont pay anything to use it unless its an international buyer who may have a currency conversion fee. Plus, both seller and buyer have protections in the event of fraud.
Categories on eBay include:
- Specialty services
- Baby essentials
Anyone can sell on eBay, although there are restricted and prohibited categories. For example, you cant sell lockpicking or locksmithing devices. eBay also doesnt sell any of its own items, which means you have no competition from them as a seller.
When selling on eBay, you can use photos and video to showcase your items.
Success Rate Varies Between Auction Houses
The success rate varies a lot between auction houses.
The best companies float around a 90% success rate, whereas the poorest sell less than 50% of the properties they take on!
So who are the best performing auction houses by success rate?
- Symonds & Sampson are the #1 most effective auction house in England & Wales, selling 92% of the properties they take on.
- Landwood have the 2nd highest success rate, selling 86% of the properties they list.
- are the 3rd most effective auction house, successfully selling 85% of their properties.
Weâve put a top-10 list together for you too. Here are the best performing auction house by success rate:
|McHugh & Co||81%|
So having seen the top-performers, how much of an emphasis should you put on the Success Rate when trying to choose the best auction house?
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Data From Our Auction House Comparison Tool
Earlier this year we built a piece of software to help sellers find the right auction house for their property sale.
Hereâs how it works:
Doing this gives us a complete picture of the auction market in England & Wales. You can explore our auction tool here, to learn more about each of the 30+ biggest auction houses in the country.
In this article, Iâve distilled everything weâve learned into one handy guideâ¦ so this really is the ultimate resource for finding the best auction house for your sale!
Ready to dive in?
Check For A Lease Agreement
Also check the Conditions of Sale to see if theres a lease agreement in place. If there is a tenant on the property, that agreement must be honoured.
When youve pinpointed a property that youre interested in, ooba Home Loans South Africas largest home loan comparison service, can make it easier for you to ensure you have the necessary funding, by prequalifying you as well as assisting in the home loan application process. Start off with their home loan calculators then use the ooba Bond Indicator to determine what you can afford. Finally, once youve secured your dream property, you can apply for a home loan with ooba Home Loans.
Get prequalified for a home loan today
DIY with our online prequalification tool, or speak to an expert.
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Check The Conditions Of Sale
Take a closer look at the Conditions of Sale before you decide to participate in a real estate auction as these can be amended until the auction date. Another thing to look out for is the interest clause. The Conditions of Sale might state that the price of the winning bid carries interest until the transfer of ownership is registered.
How Many Auction Houses Are There To Choose From
First, letâs take a quick look at the landscape of the auction house market.
The property auction industry is different than the estate agent industry. According to data from Office for National Statistics, there were over 20,000 estate agent branches in the UK as of 2017.
Each estate agent generally only covers a small area, and lots of agents compete in each spot. So it takes thousands of branches to cover the whole country.
Auction houses cover much wider areas though, so there are far fewer of them.
In fact, according to our data around 80% of all auction properties are sold by just 25 auction houses.
Picking the best out of this bunch is still a tricky job though. So where do we start?
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Best Auction Houses By Success Rate
So weâve covered that picking the biggest auction house isnât necessarily the best bet.
Another approach is to look at how successful each auction house is at actually selling the properties they list.
This is measured with one handy little stat: the âSuccess Rateâ.
Success Rate:Auction houses don’t sell every property they take on. The success rate is the percentage of their properties they successfully manage to sell.
In other words, the success rate tells you the chance of this auction house actually getting you a sale.
Over the last 12 months, the average success rate across the property auction industry has been 70.6%.
Be There With Anywhere Auctions’ Start
Our ground-breaking new platform streams Australian property auctions online and lets you bid from the comfort of your own couch. You never have to miss an auction because of time or distance again.
Whats more, our start-to-end service lets you research, watch and bid on auctions, as well as complete the purchase through electronic contract signing.
For a little more on how it all works, watch this video.
What Measures Do Auction Sites Take To Protect Buyers And Sellers
Most auction sites offer dispute resolution for buyers and sellers and limit what methods of payment are available. For example, most auction sites dont allow wire transfers but allow payment by debit card, credit card, or PayPal. The Fair Credit Billing Act helps protect buyers when using their credit cards.
Use the auction sites in-house communication system if available. This way, should a dispute arise, the site can see the exchange between buyer and seller. Never take communication or payment offline to avoid fees because that limits your protection.
What Are The Differences Between Online And In
For beginners, online house auctions are much less intimidating than in-person auctions. Some auction companies still run in-person events, but they have become less common due to COVID-19.
In-person auctions move quickly, and participants are expected to understand how it all works from the get-go. Most in-person auctions are conducted by auctioneers with an online presence, so readers should check for information about how to bid before they go. Online auctions, on the other hand, proceed more slowly. This gives potential buyers time to familiarize themselves with the auction houses rules and procedures and to participate in the process more comfortably.
What Are Proxy Bids
Proxy auction bidding enables buyers to set a maximum amount that theyre willing to pay. Similar to eBay, our system will then automatically bid higher on their behalf meaning they dont have to constantly revisit the listing.
Note that we will only bid in line with the pre-set increments and no further. Say, for example, a buyer has set a maximum bid of £95,000 and the increments are set at £1,000 and his bid stands at £92,000. If another buyer bids at £93,000, we will only bid up to £94,000. Only if another were to bid at this level would we increase up to the maximum.
We will notify all buyers when they are outbid for them to push the maximum price higher should that be the chosen decision.
What Are The Risks Of Buying A Home Through An Online Real Estate Auction
There are many advantages of online home auctions, but there are risks to consider as well. Online auctions are usually navigated by real estate investors, who have experience with some of the common problems of online auctions. If youre considering buying a home to live in or an investment property of your own through an online auction, you should proceed with caution.
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The Bottom Line: Online House Auctions Can Be Risky Even For The Most Experienced Investors
Many people like online home auctions because they provide an opportunity to buy property at steep discounts. However, even the most experienced investors have gotten burned due to a lack of inspection opportunities. If youre determined to make your next home purchase through an online auction, make sure youre prepared for the possibility of the property being in poor condition and requiring more funds beyond the upfront cash you provide in order to make the home a safe and comfortable place to live in.
If youre interested in buying a home in the next year, you should learn more about programs designed to assist prospective homeowners.
Find the best mortgage option for you.
Apply online for expert recommendations and to see what you qualify for.
Ensure You Can Finance The Purchase
When you bid at property auctions, you must be confident that you will qualify for a home loan because you cant afford to default on the sale. If you cant come up with the finance, you could face legal action from the seller.
The payment of the deposit is usually required immediately, in cash, after the winning bid and the auctioneer also requires a commission payment worked out as a percentage of the auction price.
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Key Takeaways On Auction Size
- Choosing an auction house based solely on a large market share is not a good idea.
- Although they may have a large market share nationally, they could have a poor presence in your area.
- Big companies can sometimes be a headache to deal with compared with smaller, more nimble competitors.
- The biggest companies may just be the ones who are the best at signing up new businessâ¦ not necessarily the companies whoâll do the best job for you.
Top Online Real Estate Auction Websites
September 28, 2018 By Jorge Vazquez
Real estate auctions have continued in popular, especially as people reply more on technology to buy and sell homes, and digital auctions increase in their popularity. Auction web sites are also a great way for real estate investors and homebuyers to efficiently locate and purchase real estate at outstanding prices.
In this article, we briefly review four of the top online real estate auction websites, giving you the pros and the cons of each, to help real estate investors make more money. And at the end, we give you a bonus list of real estate auction websites you should investigate.
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Learn More About Real Estate Investing
The Graystone Newsletter will keep you informed with important information relating to real estate investing. The newsletter includes information we share with our clients about the best places to invest in real estate, the latest trends, and the information you need to know to succeed investing in real estate.
Real estate investors, wholesalers, flippers, real estate agents, and everyone connected to the real estate industry will benefit from the wealth of information we share very month.
Disclaimer: HOMES4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.
How Does Your Auction Bidding Process Work
After registration, once the auction opens, buyers can place bids in line with the pre-determined bid increment levels that we set beforehand.
The bid increase and decrease buttons are clearly displayed. After setting the bid amount, its a case of clicking the Place Bid. There will be a confirmation alert as we appreciate that the buttons are sometimes pressed accidentally.
The bids are then displayed after selecting History .
If buyers are not ready to bid, clicking on Watch enables them to see how the bidding progresses. We will send alerts by email but also suggest bidders keep an eye on the listing to not miss out.
Past and Future Auction Results
The results from each property sale can be seen directly on the platform. A notification will also appear should the property sell pre or post auction.
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