If you play your cards right, real estate can represent a savvy investment. One of the keys to achieving success on the property market is making sure you bag a bargain and auctions can be great places to find impressive deals.
However, if you’ve not been to a property auction before, these events can be daunting and confusing. To help boost your confidence, take a look at the following top tips.
Time your purchase to perfection
Firstly, it’s vital that you time your purchase to perfection. Make sure you keep an eye on property prices and do plenty of research into the housing market. This will help ensure you’re ready to pounce at the right time. Bear in mind that, as well as macroeconomic trends, local issues and developments can affect the property market in specific locations.
Try a dummy run
Before the day of your auction arrives, it can help to go on a dummy run. This will help you to get a feel for the events. It should also help you to strategize for the real thing.
Make sure you’re fully prepared
When you arrive at the auction for real, you will need to register. To do this, you must have suitable identification and you must also ensure you have access to enough funds to cover any deposit you need to put down.
Bear in mind that it can pay off to get to auction houses early. These events can be crowded and if you want a seat with a good view, you will have to arrive in plenty of time. When the bidding gets underway, ensure you are in view of the auctioneer. Also, when you place a bid, make sure this individual has seen you.
Set a limit
In the heat of the moment, it is all too easy to get over excited and to keep upping your bid. This is especially the case if you have your heart set on a particular piece of real estate and you’ve put a lot of time and effort into researching it ahead of the auction.
Before the process starts, make sure you set a firm upper limit that you will not go beyond. The whole point of property auctions is that they enable you to get great deals. The higher your bids go, the less financial sense they make. If you don’t trust yourself as a qualified home buyer, get someone else to do the bidding for you.
Doing a deal
Sometimes, properties fail to meet their reserve prices. If this happens to the home you have set your heart on, don’t despair. This is not always the end of the matter. Bear in mind that the auctioneer can act as an agent and may be able to do a deal between you and the property vendor.
As long as you know what to expect at a real estate auction and you prepare yourself for what lies ahead, you stand a good chance of getting a great deal.