How Do Online Auctions Work?
The world is changing rapidly. Those who adapt will make a bundle of money that the old timers never had a chance to do. The opportunity to purchase online was never available in the past. The old timers were restricted by geography.
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How Do Online Auctions Work?
The Convenience of Online Auctions
Online auctions are available anywhere that there is an internet connection. This could be in Japan, it could be in Paris, or it could be in Mexico City.
It’s so much easier for newcomers because the online auctions allow a much bigger inventory to be accessible and available. Auctions are conducted almost daily on hundreds of different sites.
How Do Online Auctions Work?
Investing in Real Estate Online
My student, Kelly, lived in a large province in Canada. He successfully made the transition from regular real estate to buy, fix and rent, and now he has reorganized to purchase, pay others to clean up and resell online.
It sounds almost too simple. However, over the past 5 years, we have taught people, as we did Kelly, to purchase from his basement office and within a few months resell quickly and go to the bank.
Kelly purchased his first property online in Riverside, California. Using the Ted Thomas formula and recommendation of buy low at the auction and sell low to create cash, he earned a net profit of $20,000 in months.
How Do Online Auctions Work?
Tax Lien and Tax Deed Investing
I’m Ted Thomas, and I’ve been investing in tax liens and tax deed properties for 30 years. Starting as an investor and then slowly transitioning to teacher, guide, mentor coach and still investing. I like to give people more than they expect.
For example, I have a Free Gift for you. You’ll learn the secrets of tax lien certificates and how to make big profits in tax defaulted properties. Be sure to take advantage of it.
How Do Online Auctions Work?
Tax Defaulted Property Auctions
Today I’m answering your question, “How do online auctions work?” First of all, thousands of tax defaulted auction properties will be sold with huge discounts of 60%, 70%, and 80%. I have even seen examples of 90% below the tax assessed value.
The auctions in your county will be announced in the newspaper.
How Do Online Auctions Work?
The County Treasurer
The county controls the auction and the information you receive comes from the county tax collector and tax appraiser.
The county treasurer is very much in charge of the auction. The treasurer has the ability to modify the pricing and remove and add property and to start and stop the auction.
How Do Online Auctions Work?
Online Tax Defaulted Property Auctions
Auctions may be conducted online offline and simultaneously online and offline.
Prior to the auction, the county treasurer will determine the auctioneer which, in the case of an online auction, will be an online auction company, not county employees.
Online auctions are conducted from early in the morning until they finish selling, which could be late in the evening.
How Do Online Auctions Work?
Do Your Homework Before You Bid
Many auction companies will spend days reviewing the delinquent property and some will contribute information. However, all listings of value are created by the county. It could be wrong or it could be right, it’s up to you to determine the value of property so you can determine the bid price.
Many properties are auctioned that have little or no value. Other properties will have significant value. Its buyer beware.
Once you purchase online or offline, you will own the property. Online auctions or the county will have access to your bank account.
How Do Online Auctions Work?
How to Bid on Live Online Auctions
Online auctions may allow bidding in small amounts like $100 added to the last bid. Whereas at offline auctions, the auctioneer could change that and say no more $100 increments, let’s do $1,000 or $5,000.
Auctions online that allow $100 bidding increments may take 8-10 hours.
How Do Online Auctions Work?
About Premiums
Premium bidding causes confusion. I’ll try to simplify it. The county cannot raise the taxes. The county can only state the taxes and try to collect them.
At tax defaulted property auctions, live on the courthouse steps, the bid amount will be “X”. However, if it’s a public official selling it, that will be correct if the county has hired a professional auction company to do the work.
The auction company will add a commission. The government likes to rename things. So, they don’t call it a commission. The county calls it a premium. The premium could be 10% or 11% or more.
For clarity, if you purchased a nice home valued at $400,000 and you paid $100,000 – Congratulations! However, when you pay for it, you must pay $100,000 plus the 11% premium. Ouch!!
I’m sure you’d like to be the auction company earning that 11% when they are selling millions in valuable real estate.
In a nutshell, the premium is a commission to the salesperson/auctioneer.
How Do Online Auctions Work?
Winning the Bid
The bidding will start low and go up. If you bid and win at the auction, your bidder number will be recorded. When the auctioneer’s gavel drops, your bid will be the final bid.
You will be required to make payment. The auction rules will determine if it’s one payment or multiple payments. Most sales are final.
How Do Online Auctions Work?
Making Payment
I don’t recommend you bid at an auction unless you have money. Auctioneers, the county, the sheriff and district attorney expect that you will live with your bid. That is, you will pay your bid. If not, you will visit with the district attorney.
Every auction has its own rules. If you don’t know the rules, don’t bid. Keep your hands in your pockets.
How Do Online Auctions Work?
Large Auctions
Large population counties could easily have 200 to 500 properties for the auctioneers to sell. The auctioneer will follow a very specific list so you know when the property you desire will be sold.
The county treasurer makes all the rules, and in many cases, they will have a deputy on hand to enforce the rules.
How Do Online Auctions Work?
Fast-Paced Auctions
Professional auctioneers are aggressive, and they will keep the auction moving. Not showing up and paying for your bid will get an adverse reaction within minutes, and the property will be reauctioned. This is an opportunity you should pay close attention to.
Keep in mind, the auctioneer is working and being paid for by the county. The county’s expectation is to generate as much money as possible.
Bidding at live auctions will move quickly, seconds between properties. This is not a place to practice. It is a good place to observe. Most people are astonished at the pace. Large population county auctions may be in person and simultaneously online. To say it moves fast, would be a major understatement.
How Do Online Auctions Work?
Learn and Observe Before You Buy
Auction companies will list their rules online and offline. You are expected and required to know the rules.
The treasurer is in total control. Any concerns or controversy will be decided upon by the treasurer. Their decision will be final.
What is the best way to do an online auction? My recommendation is research the property you are interested in buying. Observe as many auctions as possible before attending, and don’t be intimidated if someone will pay more money. It’s okay. They may be buying the house next door and not interested in a profit.
How Do Online Auctions Work?
Conclusion
Online auctions can be fast-paced, so it’s important that you know the rules and do your research before you buy. It’s definitely worth doing your homework on this because online auctions are convenient and an excellent opportunity,
Online tax defaulted property auctions are especially a goldmine. There you can purchase mortgage-free properties for 10, 20 or 30 cents on the dollar, and with margins like that, you can make massive profits.
If you’d like to know more about tax delinquent property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
You can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
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