Property auctions can be daunting at the best of times – and even more so for first time buyers. While many buyers think that they have only won at the auction of they walk away with the property, this is not always the case. Take a look at the tips below to help ensure that you are able to gain the upper hand on your competition at the next auction you attend.
1. Visit a Few Auctions Ahead of Time
Auctions are definitely not events that you want to go into blind – mistakes made here can be extremely costly. If at all possible, try to visit five to 10 auctions before you even think of placing a bid on a property. This will not only enable you to get an idea of the prices that properties are currently being auctioned at; this will also be the easiest way for you to familiarize yourself with the whole auction process. If you aren’t able to physically attend any auctions ahead of time, it is possible to watch a few videos of them online.
2. Ensure you have a Budget and Plan in Place Beforehand
Never ever attend an auction with the intent to purchase if you are not sure how much you will comfortably be able to spend. Always know what your monetary limit is and ensure that you stick to it as closely as possible – after all, you wouldn’t want to miss out on obtaining your dream home by a few hundred dollars. It’s also important to not give away how close you are to reaching your budget limit, as this could provide others at the auction with the upper hand to obtain the property.
3. Know what you are Purchasing and Read the Contract Ahead of Time
Before placing any bids, it’s not only important to know your financial limits; you need to be realistic with regards to what condition the property is in as well. Ensure that you take the trouble to have a pest inspection as well as a through building inspection performed beforehand. It is also crucial to ensure that you hire a solicitor to peruse the contract to ensure that you will not be taking anything on that is not worthwhile. If any changes need ot be made, these will have to be negotiated before the start of the auction.
4. Obtain as Much Information as Possible Beforehand
It’s not only essential to obtain as much information as possible before the auction; you should ensure that the information you receive is well-researched. For instance, in too many cases, investors rely on the estate agent’s advice, who is acting in the interest of the vendor. You should also follow up on claims that have been made regarding rental yields and find out why the property is being auctioned.
Regardless of how you intend purchasing a property, it’s essential that you have a pre-purchase inspection done ahead of time. If you would like to find out how we can assist you in this regard, contact our team today.
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