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You Don't Have to Be a Millionaire to Participate in Online Real Estate Auctions

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By : Karim El Sheikh    99 or more times read
Believe it or not, but your last name does not have to be Gates, Murdoch or Buffett just to participate in online real estate auctions. In fact, you can easily find your affordable dream home in such events. This is mostly because some – or most – of the properties that make up the auction list are foreclosed properties. Banks are eager to sell them off for just about any rate as long as they are able to recoup the money they are owed.

Here are a number of tips to get you started:

Start with an observer or spectator role

Look for online real estate auctions that offer foreclosed properties. Sign up as a bidder (it will not cost you anything!) then observe the proceedings in silence. You will usually be given a set of instructions or rules on how auctions proceed, but it is better to see things happen with your own eyes.

Ask when you are confused

Auction companies are more than happy to clarify anything about their procedures for potential bidders. So go ahead and ask whatever you want! In fact, befriend these guys because they may let you know in advance when they have a hot property in the offing.

Know your priorities

You will usually have a list of available properties for auction at least a few days prior to the actual event. This should give you enough time to know which property you want to bid on first. If that does not work out, then you should also have Options B and C ready, but only if you truly like them, too.

Get a copy of the contract from the auction company

Auction companies typically use a standard contract for all the objects or properties they are auctioning off. Getting a copy will let you know how much you are expected to pay outright when your bid wins, as well as any other obligations you will have to meet as bidder and vice versa.

Get a pre-approved home loan

Yes, indeed, banks or mortgage companies can offer pre-approved home loans that will allow you to bid in online real estate auctions. Make sure, of course, that your bid falls within the price range offered for your loan. Or if it’s more expensive, then you should at least have enough cash to make up the difference.

Do not let yourself be swept away by the excitement of bidding!

Auctions can get terribly exciting when bids come in quick and furious. There are even times when it becomes a war between egos, with parties simply bidding just for the sake of winning. Do not let yourself fall into this death trap! Know how much you can afford to spend and stick to your budget.

Schedule a visit to the property you want to purchase

You can arrange for a house visit with the auction company. Never buy anything based on its images or description alone. Houses for sale – and not just women’s bodies for magazine front covers – can also be Photoshopped, after all.

All in all, online real estate auctions are a win-win situation for everyone concerned. Banks and auction companies get their money and you get your dream house. Best of all, you would not be charged even a single dime if you end up not buying anything.

So why not give it a try now? is designed for homebuyers and real estate investors. Search all foreclosures, preforeclosures, short sales, and more.

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