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8 Important Things to Practice When Dealing with Property Auctions

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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?
  5. 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.
  6. property auctionDon’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.
  7. Be aware of auction terms and procedures. –
  8. 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.

The People You Meet at Property Auctions

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property-auctionsDefined as a highly competitive publicly held sale at which real estate assets are sold to the highest bidder, property auctions remain as one of the most prominent avenues by which to strike great and worthwhile deals.

But that’s not what we’re here to talk about. In every property auction and regardless of how many you’ve already managed to attend, you are bound to come across different kinds of participants or investors. Care to find out who they are? If you do then read on. We’ve have them listed down for your perusal.

The Newbie

Meet the certified newcomer. This person has never attended an auction all their life whether it’s physical or online. They can become very hesitant as this is new environment for them. Other times it can be the complete opposite. You’re one at some point and before you start to empathize, remember that they are competition. It’s okay to be friendly just don’t divulge.

The Seasoned Bidder

Of the five in this list, the seasoned bidder is your toughest competition. Because of their experience and years not only in the property auction scene but in real estate in general, they’ve got quite a number of tricks up their sleeves. We all want to be one and that’s not impossible at all.

The Overly Zealous

This is that investor who is severely overwhelmed by everything around them but instead of melt down and panic, they become so excited that they shed off all logic. These are those that bid without thinking or are those that lift their hearts above their heads. They engage in the toughest bidding wars without checking if the purchase is valuable and lucrative in the end. Oftentimes, they go beyond their budget.

The Talker

They love talking to everyone and most often than not, they tend to boast about the great assets they are eyeing on and how much money they are willing to shed for it. Don’t be like them. In a place as competitive as property auctions, showing off your cards is the same as welcoming defeat with open arms.

The Observer

Last but not the least, there will always be observers in property auctions. These are those that instead of bidding, they opt to learn the process and acquaint themselves with as much information as they can. These are oftentimes smart newcomers but can likewise be seasoned bidders and sellers.