Missouri Land Auctions Online: Why Should You Invest in Missouri?
Missouri is a midwest state with a diversified geographical landscape. It has a population of about 6 million people, making it the 18th most populous state in the country.
Apart from Gateway Arch, Anheuser-Busch Brewery, and the Missouri River, Missouri offers wonderful opportunities for real estate investors. It is an attractive place to live and has rewarding investment returns.
In this article, we will tell you everything about Missouri land auctions online and what are the pros and cons of buying land in online auctions.
Overview of Missouri Economy
Missouri’s flourishing economy and a high GDP of $284 billion make it a desirable place to live and work. Panera Bread, Monsanto, O’Reilly Automotive, Leggett & Platt, H&R Block, and SunEdison are just a few of the Fortune 500 corporations that call Missouri their home. A diverse range of industries, including aerospace, manufacturing, transportation equipment, and biotechnology are the driving factors behind the Missouri economy.
In terms of real estate investment, Missouri is noted for excellent single-family rental markets. The biggest reason why the single-family rental market here is so robust is obviously the steady and rising economy.
Furthermore, the cost of living is substantially lower in Missouri than in many other regions of the country, and as the state grows, so will the demand for single-family rentals.
Although real estate markets can be found all over Missouri, the most profitable markets are concentrated in and around the larger cities, such as Kansas City, St. Louis, Springfield, Independence, and Columbia.
Over the last ten years, Missouri’s population growth rate has averaged 0.31 percent every year.
During that time, the national average was 0.69 percent. During the same ten-year period, Missouri’s overall population increased at a pace of 2.83 percent, compared to 6.23 percent nationally.
When it comes to home values in Missouri, the current median home value is $151,600.
The median price in the United States is $204,900. Houses in Missouri appreciated at a rate of 0.15 percent per year over the last 10 years. The average annual change in real estate prices in the United States was 0.13.
When you look at the property rental market in Missouri, you’ll see a gross median rent of $809, which is lower than the national median gross rent of $1,023.
Online Land Auctions in Missouri
Online auctions are a faster sale procedure that avoids the need for chains. As a result, the number of investors participating in online auctions is steadily increasing, making it a highly popular method for real estate investment.
However, as with most things, there are certain benefits and drawbacks of land auctions. Let’s have a look at them all.
How Do Land Auctions Work
- First of all, a property will be advertised online with a 30-day auction ‘timer.’ The seller will set a reserve price for the property in an agreement with the estate agent and auctioneer ahead of time.
- This “Reserve Price” is the lowest price that must be reached after the bidding and it is usually kept private.
- Next, the buyers will register themselves on the auction website. It might be free or there may be a fee associated with this, which may or may not be refunded.
- A buyer can bid online at any time of day or night until the auction timer runs out. The seller may see the bids being placed, making the process more transparent for the seller.
- At the end of the bidding, the highest bidder wins the property and has to immediately pay a non-refundable reservation fee along with some taxes.
- The buyer will then be given a deadline to complete the transaction.
- The buyer is not legally obligated to complete the transaction, but if they fail to do so, they will lose the reservation fee, which will be split between the estate agent and the auctioneer.
What are the Risks of Online Land Auctions
- Being prepared with your funds – If you win at auction, you’ll be required to pay a deposit on the day of the auction and will only have a certain number of days to pay the balance of the purchase price.
- Less time for surveyors and solicitors – Due diligence is put under a lot of pressure because there is a very short window to schedule surveys and examine the legal pack of the properties you’re interested in.
- You can be outbid – If someone offers a larger price than your budget, you’ll lose the money you spent on solicitors and surveys. Also, it might be tempting to bid above your budget, but there’s no going back once the hammer falls! So, chances are you may pay more than your budget or you might not get the desired property.
Benefits of Online Auctions
- Fast Procedure – The whole process of buying a home at auction can be finished in as little as 28 days, compared to the typical buying process, which can take months. There are set exchange and completion deadlines, which eliminates most of the uncertainty and time lag.
- Great Deals– Another benefit of auctions is that potential buyers may usually get a good deal, possibly below market value in auctions. If you’re looking for a ‘fixer-upper,’ then you can find absolute treasures for a reasonable price.
- Transparency – Unlike the traditional real estate methods, it’s a fully transparent procedure. You can always watch how the bidding is going and how the houses are priced to sell. On auction day, you can view all of the other bidders in the room, and there is no pressure to submit your offer immediately.
- Convenient and Cost-effective – Online auctions are a convenient and cost-effective way to sell and acquire real estate. You don’t have to travel to the actual auction house and can bid from the comforts of your home or office.
- Good for sellers – It’s also a good alternative for sellers who need to sell a home fast (for example, in a probate situation), and it’s a good option if you have a property that you think will take a long time to sell on the open market.
So, if you are looking for a lot of great deals on land auctions in Missouri, just visit Auction Flippers. You will find lots of investment options in lands, commercial buildings, and houses, and if you like a property, can start bidding and acquire it in the easiest way possible.