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.
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Is It Safe To Bid In Online Auctions
The popularity of online auctions has increased in recent years. With traditional auction houses such as Phillips, Sotheby’s, Christie’s and Bonham exploring this area further, expect them to grow further.
Growing in tandem with online auctions are new online bidders such as first-time buyers and millennials who have responded to the many benefits they bring.
However, with any new alternative to buying online, questions have been asked about how they work and what bidders need to do.
To help new and existing bidders, we created this guide to help you have the best auction experience you can.
What Is Your Privacy Policy
Attorney/client… doctor/patient… Bidnapper/bidder. We take your privacy very seriously. The information you provide is kept in the strictest confidence. No data is collected on individual accounts, nor is any cumulative data collected by us on the use of our service. No information is sold or distributed to third parties. Everything you bid on is between you and the seller. Read more about our privacy policy HERE.
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I Forgot My Bidnapper Username Or Password What Can I Do
You have a login to access your Bidnapper account, and you have a login for each auction site you use Bidnapper to snipe, except eBay. We don’t collect your eBay username or password. To have your Bidnapper login sent to the email address we have for you, click the DOWN ARROW, then FORGOT LOGIN? link in the top right corner of the site. Enter your email address on the page that opens. Your username and password will be emailed to you. If you have a spam blocker enabled on your computer, be sure it allows emails from bidnapper.com through. Your usernames are visible on the MANAGE LOGINS page of your MY ACCOUNT menu once you have logged in.
How Much Does It Cost To Buy Through An Online House Auction
Online auction sites are usually compensated by charging fees for their services. Before you bid on anything, you should carefully review the information listed on the site.
This will help you understand what fees youll be charged. Online auction fees can include:
- Buyer’s Premium: This usually costs between 5 10% of the final purchase price of the home, or a flat fee of $1,000 or more.
- Transfer Fees: This fee is generally $1,000 or more.
- Auction Service Fee: The fee can be $3,000 or more.
- Technology Fee: An additional fee for using online services, usually costing around $200 $500.
- Bidding Deposit: A bidding deposit is a form of earnest money, and its applied to a bidders overall purchase price. However, this deposit is forfeited if the buyer fails to pay the full purchase price within the auctions time frame, usually within 24 hours of the auctions end.
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How Do I Adjust The Bidding Interval So My Bid Arrives At The Auction Site A Few Seconds Before The End Of The Auction
This adjustment is available on the PREFERENCES tab of the SETTINGS page on your MY ACCOUNT menu. Our default is 4 to 5 seconds before the end of the auction, and we do not suggest a bidding interval any shorter, but you may have a longer, or shorter, interval if you feel it gives you an advantage. Shorter intervals run a greater risk of arriving after the auction closes.
How To Find An Online Auction
We have pulled together a simple table so you can compare online property auction providers, their size, their fees and their customer reviews.
There are plenty of specialist online property auction sites that come up from a quick search online which conduct online auctions on behalf of estate agents.
Some estate agents advertise online auction properties themselves. You can find these on their website or take a look on Zoopla and Rightmove using the keyword search function to filter the properties selling through auction.
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Review The Payment Terms
Mentioned in the Terms and Conditions, or important information, are the payment terms for the auction.
There will be deadlines for payments and also the premiums and taxes that you will need to pay.
Itâs important to understand these payment terms because you can understand when the auction house will request payment and this will give you time to ensure the necessary funds are available.
At William George, our payment terms can be found in the important information.
Do You Guarantee My Bid Will Win
You are guaranteed to succeed when you use Bidnapper.com. We do not guarantee you will win every auction you bid on, but we do guarantee you will win during your free trial and your subscription to Bidnapper. If you do not win an auction any time during your free trial, we will extend your free trial. And, when you subscribe, if you do not win any auctions during your subscription period, we will extend your subscription. Either way, you are GUARANTEED TO SUCCEED with Bidnapper.com.
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Youll Be Competing Against Experienced Real Estate Investors
Auctions have traditionally been the domain of real estate investors, but online auctions have opened auctions to all types of buyers. However, youll likely find yourself bidding against these investors at some point.
For that reason, it can be helpful to watch a few online auctions before participating in one yourself. This will give you an opportunity to learn how they work.
Monitor The Bid Increments
The auction house can set their own increments for a lot which can spiral quite quickly as the bids progress through the price bands.
Itâs important to monitor the increments so youâre well aware of how much the price is rising by.
At William George, you’ll be made aware of the next minimum bid and this will allow you to decide if you want yo raise your current bid.
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I Bid More Than The Winning Price Why Did I Lose
Usually it is because your bid was below the minimum bid increment. There is a sliding scale of minimum bid increments, and they are different for each currency, and the increments increase as the bidding gets higher. Find out more about this by searching ‘bid increments’ on your eBay Help page.
If you need more information, please go to our TUTORIAL page on Bidding Strategy, or check out our BIDDING TIPS.
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.
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Why Is Real Estate Sold In Online Auctions
Homes are sold at auction for a variety of reasons, and the sellers can be homeowners, lenders, municipalities or even the U.S. government. For instance, the government sometimes seizes properties for failure to pay property tax, and homes can sometimes be foreclosed on for a borrowers failure to make their mortgage payments.
When this happens, the home is sold at auction. Lets look at some of the most common reasons homes are sold at online auctions.
Online Property Auctions Explained
Online property auctions enable you to view images of the property, bid on it and buy it, all from behind your computer or phone screen. Bidding online offers all the same benefits of buying and selling as a typical room auction, such as access to a versatile range of unique properties and transparent sales.
There are two ways sellers can choose to auction their property by unconditional online auction, or by conditional online auction. The difference between these two types of sale is as follows:
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Auction Network Is Located In Toronto Ontario Canada And Conducts Live Online Auctions On A Regular Basis Including A Full Time Auction Consignment House We Are A Full Service Auction Company Servicing Thousands Of Clients Across North America And Buyers From Around The Globe
Auction Network is fully equipped with the latest technology in the auction business.
Our family of auctioneers are proud National Auctioneers Association members and graduates of the world-renowned World Wide College of Auctioneering.
Daily Auctions specializing in AMAZON Returns Auctions, Unclaimed Freight Auctions, Coin Auctions, Banknotes, Jewellery, Art, Electronics & more.
Auction Network is Torontos Online Auction House | We Specialize in: Online Auctions | Liquidation Auctions | Online Auctions Ontario | Timed Auctions Toronto | Coin Auctions | Currency Auctions | Art Auctions | Stamp Auctions | Silver & Gold Auctions | Sports Auctions | Charity Auctions | And Much More!
The Auction Network7357 Woodbine Ave Unit 1Markham, Ontario
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Set Yourself A Budget
Online auctions can provide a massive thrill and it can lead bidders to get ‘lost in the moment’ and bid more than they would like to on a lot.
To avoid this, there are platforms, such as the ones we use, which let you set a maximum bid and this becomes your ceiling.
When you calculate your maximum bid, take into account any premiums and taxes as this will ultimately increase the final price.
The terms that you need to look for are ‘Buyer’s Premium’ and ‘Sales Tax’.
- Buyer’s Premium – applied to the winning bid. It’s usually in the form of a percentage and is applied to the price of the winning bid.
- Sales Tax – tax applied to the winning bid. This is added to the hammer price .
If that feature is not there, it’s important to stick to your budget and not get carried away in a bidding war.
Only bid what you’re willing to pay.
Won A New Ring At Auction And Need It Resized Give Us A Call Or Email In Prices Range From $45 To $150
Consignors
Our auction house offers low-cost and trusted services». We host live online auctions out of Anchorage Alaska every week. With thousands of active bidders across our multiple bidding platforms», we take bids from nationwide and abroad. While working with the leading auction house in Alaska for over 40 years, you can be sure that your items will get a fair price at auction! If you are interested in our consignment services, call or email us at .
Bidders
At Alaska Auction Company we strive to make it as simple and hassle-free as possible. While bidding with us on HIBID» we offer the ability to bid anywhere on any device, which means that whether youre in your office or at home there will never be an issue! We offer open previews for our bidders, rapid invoicing at the close of the auction, in-house shipping, and plenty of payment options for all of our auctions. If you have any issues registering for an auction or placing bids, call or email us at .
If you would like to see any of your items featured in our live online auctions and are interested in consigning, please contact us now at , email us at , or fill out our Free Auction Evaluation form.
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Check The Accuracy Of The Images & Description
There may be a time where the description and image of the lot do not correspond. Before you consider bidding on the lot, scrutinise the description and check the images match.
It’s not advised to bid on a lot if you’re not 100% sure of what you’re bidding on.
If you have questions or fears, itâs imperative that you speak to the auction house for clarification. They will relay your question to the vendor who can answer.
At William George, you can find an ‘Ask a Question’ feature which is available on all lots. This will allow you to express any concerns you may have. Your question will be presented to the vendor who will respond.
Cons Of Buying Via Online Property Auction:
- If you win the bid, there is usually a minimum reservation fee of at least £5,000 + VAT or around 4% of the purchase price. If the property you are buying is less than £143,000, you will be paying more than 4% in fees to the estate agent.
- You will pay more in stamp duty as HMRC will charge stamp duty on the final price agreed plus the reservation fee.
- Depending on the terms of the online auction provider, buyers and sellers may have to pay a share of the costs of the legal pack. Its also known as the auction pack, buyers pack or sellers pack and typically costs up to £200.
- Youll need to have the reservation fee ready and waiting it cant be part of your mortgage funds because of the need to pay it instantly once youve won the auction. It is non-refundable if you decide to withdraw.
- You, as the buyer, are paying, whereas in normal sales on the open market, the cost is borne by the seller when they instruct an estate agent. And a reservation fee which can be anything from 2.5 4% is often much more than you would pay an estate agent in commission or fixed fee to sell a home on the open market.
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If I Subscribe To Bidnapper How Do I End My Service
You have complete control of the billing on your Bidnapper account. After you log into your account, there is an END REBILLING and a RESUME SERVICE button on the ACCOUNT SERVICE tab on the SETTINGS page of the MY ACCOUNT menu. If you have an active subscription, one or the other buttons will be visible, the other faded. Just click END REBILLING to end the rebilling on your account. Your service will end with the current billing cycle. When you are ready to continue using Bidnapper, just click the RESUME SERVICE button. You will not be billed again until you resume your service. This way you retain your current rate and avoid any future price increases, and you don’t have to re-enter your billing information.
Cons Of Selling Via Online Property Auction:
- The sold price achieved at auction will generally be less than you would achieve on the open market.
- You may sell your house for even less because most savvy buyers will work the reservation fee into the price they are willing to pay. So if they are bidding on a house worth £80,000, they would only bid £74,000 to allow for the hefty reservation fee of £6,000. So while it looks like the buyer pays all the fees, you are likely to be losing out too. The estate agent and auctioneer split the reservation fee no matter what price you achieve.
- There may be other administrative fees passed on by the auction house or estate agent ask for a list of all of these.
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How Do You Set The Auction Guide And Reserve Prices
Having actively operated across various property sectors for over 2 decades, we are very confident in our ability to value auction properties with complete accuracy.
We typically start by having a close conversation with the seller regarding the location, condition, size and a range of other factors regarding the property .
Our auction appraisers will look closely at sold HM Land Registry data and to a lesser degree housing / commercial / land stock on the open market thats recently been marked as Under Offer or Sold STC.
We also have access to the rich data sources found on Rightmove Plus, Zoopla Pro, PropertyLink and Essential Information Grop , not available in the public domain. Property Solvers Auctions are subscribers to these services.
Following these steps enables us to provide evidence-backed and unbias figures that inform our seller clients on the very best way to position the property for auctions. Were very conscious not to overprice properties for auction so as not to attract buyer interest and bidding.
Establishing the Guide Price
The guide price is an indication to buyers as to what both we and the seller expect to achieve at the end of the auction process.
However, it should not be taken as a definitive valuation or what the property will sell for. Its very common for the eventual sales price to exceed the auction guide, sometimes by a significant amount.
The Auction Reserve Price
