Property auctions can offer incredible value to buyers who are looking to buy their dream home for a bargain price. But if it were so easy, everyone would do it, right? The truth is, just like any other property sale, auctions can be tough places to find success. But a little planning and knowledge can take you a long way. We’re going to explain the strategies you need if you want to win your dream home at a property auction. Read on - and with a little luck, maybe you will bag your ultimate prize!
Finding An Auction
Property auctions happen all the time - and in all kinds of places. Keep an eye out on this page or check your local paper, auction websites, and also check the seized property auctions run by the Treasury. The process is similar to buying a home via the regular route. Real estate agents will advertise in local newspapers, store windows, and will even place signs outside the property.
Try Before You Buy
Never go into an auction blind - it is just too risky if you are new to the property auction game. Bear in mind that not all realtors will grant you access, but try and arrange a viewing wherever possible. The simple fact is you can’t expect to buy your dream home based on photos alone - you have to ‘feel’ it first. Once you have experienced several property auctions, however, things get a little different. You will be able to rely a lot more on your gut instincts and should be able to pick a new house just by looking at it from the outside.
Play the Long Game
The chances of you finding success in your first auction are unlikely - unless you pay over the odds. Try to attend a few auctions just so you can get a feel of how they run, and watch out for the ebbs and flows of the bidding process. Property auctions can be strange beasts. Sometimes the atmosphere is electric - before you realize you have overpaid. On other occasions, the whole process can seem dull, yet someone walks off with an absolute steal.
Set Your Limits
You should go to any property auction with two figures in your head. The first is how much you want to pay. The second is how much you can afford to pay at a stretch. The idea is to walk away if you get too close - or overreach - the second figure. And, to stay as close to the former number as possible. Always seek out the list price of the property first and focus on these in the auction. While it might be the realtors setting a low price to encourage bidding, it might also be the sign of a foreclosure property. Foreclosures often bring the best deals, as realtors cannot make a profit from them. Get lucky, and you could walk away with the bargain of the century.
Finally, do not get swept away with the whole bidding process. It’s so easy to do, but the stakes are high. And ever go over your maximum limit, even if it’s for your dream property. Don’t forget; it’s not just the home you are buying. You will also have to pay auction and bidding fees, as well as lay down a deposit. It’s also advisable to get clearance from your lender before the event. Nothing is more painful than winning your dream home at an auction only to discover you haven’t passed the clearing process.
Good luck with the auction!
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