Known as an accelerated marketing and competitive bidding process that involves a public sale of real estate assets, property auctions have long been a favorite avenue amongst investors and even sellers.
But as someone who wishes to bid and score a great deal, there are a number of things that one should never do at one of these property auctions. Care to find out what they are? Read on.
- Never come unprepared. Know everything you can about the auction from the organizers to the procedures to the location to the assets being held up for sale. Research is crucial and it can spell either the success or demise of your game.
- Never forget to prearrange one’s financing. Before participating to bid, be sure that you have the resources necessary to complete the transaction should you be awarded as the winning bidder. In most auctions, a security deposit will be asked of participants and a winning bidder will be required to pay upfront costs with the remainder to be paid depending on the terms set by the selling party. Failure to do so will strip you of the chance so be sure that your finances are ready and accessible.
- Never overlook inspections. Chances are, you’ll get a brochure or newsletter prior to the bidding day. That or you can look things up on a website. It’s a must because this is part of preparation. One has to peruse the available properties to better gauge which ones would fit your needs. That and you’ll need to pay it a visit much like an open house and get in surveyed by a professional.
- Never overspend. It’s a no-brainer but a lot of people still commit the crime of going beyond their budget. Prior to the auction, make it a point to set a bar and stick to it no matter what. Never let emotions ride over your senses because this is still business regardless if you are purchasing for personal or commercial use.
- Never be too transparent. When attending property auctions, make it a point to keep your cards as close to your chest as possible. Don’t be too obvious or even chatty to both co-bidders and sellers about your plans, which assets you like and how much you are willing to spend on them. That information might be used against you.