Strategies for Getting Great Deals at Property Auctions
Strategies for Getting Great Deals at Property Auctions
A great way to buy property is at auction. You can get great homes at prices far below what you would pay on the open market. That said it can be a pretty hair-raising experience, and you need to prepare well, otherwise you might end up paying far too much. Here are a few tips on how to prepare for property auctions.
The most important thing to do before you go to an auction is to do your research. Get the auction catalogue in advance and do thorough research into the properties that interest you, this should include there location, average prices in the area, long term development in the area and the house itself. Some people just show up at auctions and bid on houses sight unseen; considering the amount of money involved, you definitely don't want to be one of those people.
The next step is to get your finances in order. Figure out how much you are willing to spend on each property you are interested in and set yourself a maximum bid for each. Also make sure you have enough available funds to put a ten per cent deposit down in the event you do find something you like.
When you get to the auction itself, it's all about keeping your cool. People can get carried away and end up in a bidding war. This only helps the seller, and you'll end up spending more than you can afford for the property. So remember your maximum bids and don't overstep them, and don't get caught up in the competition. If you follow these tips you should have no problem snagging a great property at auction.