Useful tips for buying an auction property
Are you thinking of buying property? You can discover great bargains by taking the auction route but you’ll need to understand a few practices before you start bidding on auction properties. From doing your research to preparing your finances, there is a range of steps you can to take to ensure that your investment is successful. Find houses for sale on GotProperty today.
Do your research
Learn as much as you can about the property before you attend the auction. Conduct an online search to check the important facts so that you can avoid wasting your time and money. The majority of auctioneers will also compile a bidder’s pack with useful details.
Visit the property
Take the time to inspect the property before the date of the auction. Show days are usually arranged by the auction company. Take a closer look at the property so that you can make an informed decision on whether it’s worth investing in or not.
Read the conditions of sale
Read through the conditions of sale carefully before attending the auction. This document will give you the details of what is being offered as well as any potential issues that come with the property. Look out for municipal accounts that are in arrears or tenants who are still living on the property. Once you’re at the auction, read the condition of sale again to check for any amendments.
Organise your finances
Get your finances in order before you attend the auction. Decide on the maximum price you’re willing to pay for the property and factor in the cost of extra fees. Once you’ve calculated how much money you need, make sure you have it available on the day of the auction.
Be ready to register
On the day of the auction, you’ll need to register as a bidder. Your ID will be required as well as a document that serves as proof of your address. You can also expect to pay a registration fee. This fee is typically refunded to you if you decide not to bid.
Review the order of sale sheet
Once you’re at the auction, ask for the order of sale sheet. This document will provide you with the lot number of the property you want to bid on. Find a location where you’re clearly visible to the auctioneer before your lot comes up. You’ll need to be ready to bid swiftly and determinedly.
Prepare yourself mentally
If you’ve found your dream house and started imagining living there, it can be difficult when someone outbids you at the auction. Avoid getting yourself into financial hot water by deciding on a price that you can afford and then sticking to it. You’ll need to put your emotions aside when you’re bidding and know when to stop.
Know the reserve price
An auction property may have a reserve price, which is the minimum amount that it can be sold for. In the case of an absolute auction, there is no minimum price and the property will be sold to the person who places the highest bid. This typically takes place when properties are being sold to cover unpaid debt.
Understand that real estate auctions are final
If your bid is successful, the results of the real estate auction are final. As the winning bidder, you’ll have purchased the auction property as it is. If you bid on the wrong property in error, you’ll still be held responsible for the sale. Likewise, if you discover problems with the property after the auction, there will be no room for further negotiation. Defaulting on a sale has severe legal and financial implications.
An auction property can offer you great value for money once you know the best practices to achieve successful results. Buying a new home? Find houses for sale on GotProperty today.