Why Buying Real Estate At Auction Is Better Than Buying On The Open Market?

Posted by jason michalak on July 21st, 2016

First-time home buyers need to stick to a budget; if not controlled, things can go out of hand before you even know it. While it is quite obvious that you would want to spend whatever you have, to buy your dream home, you should understand that there is a lot more than just a home's asking price that you will have to deal with. You will also have to consider maintenance costs, mortgage payments, landscaping renovation costs, and property taxes.  Saving and budgeting while keeping the future in mind are important elements of property ownership, it is vital that you examine all the available options of home acquisition, and choose the one that best fits your goals and willingness as well as your capacity to spend.

One of the options that buyers with pinched pockets find quite appealing is buying homes at auction. There are many online and physical real estate auction companies in the US that allow the intermingling of sellers and qualified potential buyers. There is an intrigue attached with auctions that make buyers keep coming back to bid and win properties at a particularly better price than they would have found with any other option. For many, it's like visiting a discount retailer shop and grabbing hold of the item that they have their eyes on before anyone else;

One of the most advantageous things of buying homes at auction is that they are sold at fair market value. You can rest assured that the price you are paying to buy a home is well worth it by choosing an auction platform that has developed a reputation of holding fair auctions over the years. If you choose to buy a home on the open market, you will probably find yourself surrounded with certain confusing factors trying to assess the home's value – comparing similar properties in the neighborhood, pros and cons of buying property in that location, and supply and demand of real estate in the community. In the open market, the real estate agent of the seller is the one who is pulling all the strings; however, it's a level playing field at auction. Neither sellers nor buyers hold any advantage over one another, and thus the chances of a fairly beneficial deal for both are quite high.

Buying or selling property and/or REITs, at online auctions is certainly the more fruitful way to go.

Author's Bio: The author is a blogger. This article is about real estate auctions. For more details: https://www.fre.com/reit