Many people who are just getting started in real estate investments are skeptical about online auctions. Because you’re purchasing commercial real estate online, it seems challenging to know exactly what you’re getting into. However, online auctions do have many benefits for potential investors.
You can find many properties for cheaper than a negotiated sale or even an in-person auction. Online auctions eliminate a lot of the middle men involved in the purchase process. Although bidding can get competitive, online auctions usually save buyers money. Also, because you bid exactly as much as you wanted to pay for the property, you’ll know right away how much it’s costing you.
Online auctions give the buyers the assurance that all bidders are competing fairly, because all the terms are laid out for everyone. Since all bidders are on equal footing, you don’t have to worry that somebody else may be getting a deal under the table.
Another benefit of online auctions is the reduced negotiation time. Negotiated sales can drag on for months, and you may not even get the property at the end of the process. In an auction, unlike a traditional sale, the timeline is spelled out from the beginning. There is a definite deadline for you to bid, and a set timeframe for the seller to complete the sale. Closing and purchasing dates are already known by both parties, expediting the entire sale.
Although you typically don’t view the property in-person in an online auction (unless you’re local and take the time to do so on your own), all auctions come with extensive information. You can find more information through Internet searches and courthouse requests. The seller is required to give potential bidders certain information, which varies from site to site.
Finally, in online auctions, the buyer knows the seller intends to complete the sale. Traditional sales can sometimes fall through if the seller decides not to sell. This guarantee gives the buyer reassurance that the property they’re bidding on is absolutely up for sale.
Even if you’re new to purchasing commercial real estate, online auctions can be a great option. There are many advantages to making real estate investments through auctions, so take a look at online real estate auctions today and start finding great deals!
