Property auctions have become a celebrated platform by which real estate assets have been traded over the past years. While they may initially be intimidating, immersing in the experience will prove that it has more to offer and that all those myths are nothing but misconceptions that need to stop stat.
But even so, this does not say that auctions are easy peesy. Like any other method of real estate acquisition, it comes with a lot of work and not to mention competition. We need to put in our end of the bargain if we want to succeed and score the properties we seek for a sweet deal.
That said, here are 8 important things to do before, during and after property auctions that you need to take note of.
- Get financing pre-approved. – Or in short, you need to have the resources ahead of time. Remember that cash takes a while to pool and arrange so we need to buy adequate time for them to arrive. To do so, we need to act on it early.
- Run a background check. – Because truth be told not all auctions and organizers are one and the same. We need to do enough research to make sure that we only participate in trustworthy and quality ones.
- Double check the asset. – It would be a sin not to because we cannot rely on all the information given by sellers. We need to do our own research which brings us to our next point.
- Have it surveyed. – It doesn’t matter which platform you buy properties. A survey will still be necessary and so is a visit. Besides, why would you opt not to?
- Set a spending limit. – We cannot let our hearts rule above our heads or else we’re down for trouble and spending beyond capacity is a surefire ingredient for disaster. Discipline is a must in property auctions.
- Don’t be transparent. – It can be used against you. Besides, raising curiosity on a certain asset will only increase your competitors and you don’t want that. Additionally, telling how much we’re willing to shell out for an asset prior to the bidding may just increase the initial bid. Not good.
- Be aware of auction terms and procedures. –
- Take note of one’s payment schedule. – As mentioned, property auctions often come with short and strict payment periods so make it a point to pencil them in so you don’t miss out. Winning the bid isn’t end game just yet.