Many investors are buying property at auction. Before you go to your first auction however, know how to be successful and not blow your budget.
Guest post from Rockwall Heating & Air
Buying Property at Auction-7 Tips To Prepare For Auction Day
Buying a property at auction can be both an emotional and exciting event to take part in. While it seems easy and fun, your auction strategy needs thorough consideration, especially if you are a beginner.
The first thing that you should do is to prepare yourself for the big day.
Knowing the system of the auction, how it will run, and picturing possible results will help reduce stress and pressure on your part.
Here we have outlined top 7 tips to help you sail across an auction event like an expert.
1. Get Your Finances In Order
Be sure to prepare your financial plans before the big day. This includes ensuring that you have your loan approved or your cash available. Your budget should include the possible expenditures for repairs and renovations, not just the cost of the house.
Know the limits of your finances so that you can determine the maximum price to bid. It will prevent you from risking expenses more than your available budget.
Find out if they accept credit cards or cheques as modes of payment.
2. Attend Auction Events
Before actually bidding on and buying property at auction, attend several auction events first to watch learn different bidding strategies that you can use.
Observe how the auctioneers market the properties and take note of the techniques. Consider the methods the bidders used to win the property that they want.
Attending auction events can help you feel the atmosphere so that you will no longer be surprised on the big day. It also opens opportunities for you to get better properties to choose from and get to know the neighborhood even more.
3. Bring In a Professional to Inspect the Property
Pest and building inspections are necessary before the auction. Hire a professional to visit your target house, especially when it is your first time buying property at auction.
It is good to make a full house inspection with a trusted home inspection agency. They will check the house and make necessary adjustments to balance the repair cost to the price and see if it fits your financial plan. They will be of great help in paying the right amount for investment.
4. Get to Know the Real Estate Agents in the Area
A real estate agent can send you reports on the properties ready for market. Participate in open houses and auctions in your area and understand the system of the neighborhood.
Make some follow-up researches on the selling points of the properties and their marketing prices. This will give you clearer understanding of the market value for the properties you’re interested in.
5. Refrain From Showing Visible Excitement
Learn to control your emotions and excitement for the event. Do not announce your interest in all the bidders for you might end up inviting more competition for the property.
As much as possible, stay calm when you see the property that fits your buying criteria and budget. This will prevent other bidders from directing their attention to your target.
6. Plan a Strategy for the Auction
There are common strategies that experts recommend during the auction. These include starting low and going slow. The event is not a race.
Taking it easy will give pressure to the seller and might cause some downward adjustment on the price.
Also, do not expose everything on the seller agents especially on the specific amount you’re willing to pay. Be confident in bidding. Call your bids loud and clear but don’t give your maximum bid on the start of the auction.
Although auctions are like competitions, don’t go out there just because you feel competitive. You might end up getting the place which is not your target just because you want to win over some nasty competitor.
7. Consider Having a Buyer’s Agent
A buyer’s agent can help you walk through the difficulties on auction day. They can even bid on your behalf. If you are a novice at buying property at auction, a buyer’s agent can help you get the property that you want.
Make sure that your agent understands your criteria and financial limits so that he can guide you in winning the right home for you.
You can also throw questions to them in case there are things you want to clarify prior to the big day.
If the extra expense for a buyer’s agent isn’t in your budget, you can ask a trusted friend to join you and guide you in the auction event.
About the Author:
Rockwall Heating & Air is your one-stop source for all your heating and air conditioning needs. Proudly serving Rockwall, TX and neighboring cities, the company has been delivering top-notch HVAC services for both residential and commercial customers with focus on excellent service.
Whether you need a new system or you need repair or maintenance service for your heating and cooling unit, Rockwall is always ready to help.