4 Steps to Buying an Investment Property Online
With auctions in Australia typically held in-person at the property or an auction room, the move to online auctions is an exciting one. Traditional auctions are exciting, and an online auction is much the same, with opportunities at your fingertips for interaction and strategically bidding to secure your next investment property. Keep reading for everything you need to know about buying an investment property online.
1. Get familiar with online auction software
Whether it’s registering your details, placing bids, signing the contract, or paying the deposit, the software used to run online auctions streamlines many tasks into one central system. Consider registering as a spectator for an upcoming auction to get familiar with online auction software. This will help you understand the online auction process and platform.
2. Do your research and prepare finance
Like a traditional auction, you still need to research the property and location. Analyse recent sales in the area, including sale prices and clearance rates. This will help you understand what similar properties have sold for at auction. And before you bid, make sure you have your finance sorted. You’re legally required to purchase the home if you have the highest bid, so having pre-approval is important.
3. Take advantage of online auction platform features
There’s a range of handy features on online auction platforms that will help you get all the information you need, some of which you wouldn’t have at in-person auctions. For example, some platforms will list the number of registered bidders, so you know exactly how competitive the auction may get. Other helpful features include things such as being able to see the previous offer history on a home. The availability of features and process of the online auction will depend on the real estate agency, so do your usual research to gather information if the online auction is simply via live stream.
4. Set your price limit and strategy
Just like an in-person auction, you need to set a price limit and strategy for auction day. Think about what your price limit will be, and do not exceed this. It’s a good idea to set your limit as an uneven number because auction bids often happen in multiples of $10,000, $5,000 or $1,000. Further, make sure you place a strong bid at the start of the auction, as this may discourage others from bidding.
Buying property online can be just as exhilarating as the traditional in-person auction. It’s a convenient and efficient new way to buy investment properties and one which means you may not even need to leave the comfort of your home. However, you still need to be strategic and gather all the information you need to secure your desired property. If you’re new to online auctions, check out some of the platforms today to see what additional information and features you may be able to uncover.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.