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What Is An Online Property Auction and How Do They Work?

What Is An Online Property Auction and How Do They Work?

When we think of a property auction, we probably
imagine a room full of investors with an auctioneer up front – hammer in hand –
spouting numbers at record speeds.

These days, this couldn’t be further from the
truth!

Nowadays, property auctions are a place for
everyone and there’s no need to physically attend one. Online auctions are
rising in popularity as a convenient way of bidding for properties in the UK.

What Is An Online Property Auction?

Online property auctions are similar to traditional
auctions. The main difference is that instead of bidding in person, you bid
online.

Reputable online auction sites are completely safe
and have huge benefits to bidders. You can bid from anywhere – whether you’re
on holiday, at work or even in bed! The experience can be calmer and more
efficient.

How Does An Online Property Auction Work?

Step #1: View Properties

Just like a traditional auction, you’ll have the
opportunity to browse the properties on auction and schedule a visit. Most
online property auctions will have open house dates, rather than individual
viewing appointments.

Step #2: Create An Online Account

If you’ve found a property to bid on, you’ll
usually need to create an account on the auction house website. It should be
free to join and relatively simple to sign up. You’ll normally need an email
address to create an account.

Most online auction houses will ask for proof of
identity, so you may need a picture of your passport and a utility bill to
hand.

Step #3: Add Your Payment Details

Once you’re registered, you’ll normally need to add
your payment details before you bid. This is because you’ll be charged an
immediate deposit as soon as you win an online auction.

Step #4: Check the Sale-Type

There are two types of sales at online auctions,
and you’ll need to check which one applies to the property you plan on bidding
for.

The two types include:

  • An
    unconditional auction
     – Which is the same as
    a traditional auction, where the sale becomes legally binding immediately
    after bidding has closed. This means you’ll need to have everything agreed
    and sorted in advance of bidding (like mortgages or surveys).

  • A
    conditional auction
     – Which gives you the
    right to buy the property after you’ve won the auction. You’ll still be
    charged an immediate deposit. But you don’t need to have your mortgage,
    survey, or anything else finalised before you bid.

Step #5: Partake in Online Bidding

There are usually two ways to bid at an online
auction. You can either:

  • Bid
    via proxy
     – Which is an automated bidding option.
    You set your maximum bid in advance and the system will automatically bid
    in small increments until you’ve reached your maximum.

  • Bid
    in real-time
     – Which is when you bid live against
    others. Each time you are outbid, you can enter your new amount on the
    system. Usually, online auctions have rules where the end time is extended
    if a buyer bids with less than five minutes to spare.

Thinking Of Bidding For a Bridgend Property?

Moving You are your local property experts in South Wales. If you’re looking at buying a South Wales property, we’d love to
help!

Get in touch on 03334041188 or email us at
[email protected]

 

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