Property auctions are already a thing but with the advent of the modern world, computers and the internet, we have been graced with online property auctions as well.
The said avenue paves the way and opens doors for investors to acquire the assets they want and need without having to physically be present in a bidding venue. This makes a lot of things very convenient, which is the very charm of such auctions. Unfortunately, it is riddled with several lies and misconceptions so today we shall set the line straight and separate the facts from the fallacies.
LIE – “Everything happens online.”
TRUTH – Almost but not entirely. There are still avenues wherein one will have to do physical work but for the most part such as the bid itself, it shall be accomplished in the interwebs. An example here would be visiting and inspecting the property that one is interested in.
LIE – “Surveys will not be necessary.”
TRUTH – Every method of asset acquisition will always necessitate a survey. A chartered surveyor must always be hired to inspect, examine and validate a couple of details like structural integrity, market value, ongoing cost, salvage value, depreciation value, appreciation potential and the like. This brings us to our next item on our list.
LIE – “You cannot visit the property pre-bidding.”
TRUTH – The process being online does not prevent buyers from taking a look at the asset themselves. A visit can be arranged and scheduled which is why research shall be necessary and why scrolling through the brochure or listing becomes advantageous.
LIE – “Finance is not immediately necessary.”
TRUTH – Just like a regular bidding, online auctions will require immediate and upfront payments so it would be silly to not have adequate funds on hand. Plus, we all know how long it often takes to pool huge amounts of cash and not to mention the application procedure of majority of credit financing; that is unless you’re some millionaire who can instantly whip out a check or two.
LIE – “All auctions are the same.”
TRUTH – Online property auctions are not one and the same. They can vary not only in the assets being sold but also in terms of rules and procedures. This is why interested bidders must first make sure to carefully read and scrutinize the details put up in the site. Asking won’t hurt either so go ahead.