Nowadays more people are buying different kinds of products through online auctions. Real estate is no exception. Although a large number of houses is still sold through traditional methods, many of today's buyers and sellers prefer online auctions. You may ask yourself why you should choose to buy a real estate property through an online auction, instead of going through the traditional auction or a real estate agent. Here are some benefits of online auctions for buyers.
A normal property auction represents an exchange on the fall of the hammer. But be warned that as soon as the hammer falls you're locked into paying for the auctioned property. With
online auctions, you provide instead an exclusive Option to Purchase when the virtual hammer drops. This exclusive period allows you an uncontested opportunity to acquire the property with a timeframe of 28 days to exchange contracts.
It's no secret that the quote “nothing ventured, nothing gained” by Benjamin Franklin doesn't work sometimes. In many cases, we need to take risks in order to have something good, but this is not the case. When we buy through estate agents, we are always at risk of being gazumped at the last minute. Online auctions avoid this risk with the exclusive Option to Purchase period. If the seller changes their mind during this time, you will receive your deposit back in full.
As with a traditional auction, the buying process is quick with a set timeframe in place. When the auction ends, you then have 28 days to exchange and 28 days to complete after that. This means you could be getting the keys to your new house in only eight weeks after the hammer falls.
One thing you should know is that online auction is primarily used to sell the types of property you would not otherwise see in the auction room, including residential houses and condominiums that can be mortgaged. With the added timeframe, this gives buyers the opportunity to organize any long term finance they may need.
All things related to the purchase, including terms and costs, is transparent from the start. This guarantees buyers that they’re not in for expensive surprises.
Remember, when multiple buyers are interested in the same property, the price can quickly skyrocket. Emotions tend to take over as buyers are always eager to win in auctions and seal the deal on their dream house.