Who says that buying a house at an auction is a joyride? The activity is petty stressful. But nothing good comes easy, isn’t it? The money stakes on an auction are so high that people are kicked out of their comfort zones. People who are experienced in auctions say that it is not only emotional but also exciting. The best properties are usually sold via auctions, and if you avoid them, you will be losing the greatest opportunities. Here are five important things you should consider while bidding for a home auction.
1. Be in Love with Auctions
First of all, you have to love what you do. It’s the first step to be successful. Have a positive mind about it. When auctioning, find out who else has an interest in a property and what they intend to pay. Through that, you will be able to know who your competition is and how to play your cards.
Many buyers don’t prepare for auctions, and it turns out to be a stressful event, and they fear that they may pay more than the property’s worth. But if you love doing it, you will be at ease and prepared.
2. Visit the Auctions Before You Bid
Needless to say, bidding is indeed an enjoyable experience. However, you should explore it first before getting your hands onto it. Search for “home auctions near me” and attend them to see the language people use. Also, visit the agents from real estate and those representing the buyers, and check the auctioneers.
Having first-hand knowledge at all times is good. It’s just like in politics. Some people become right-hand men or women to politicians, learn how the game is played, and then step on the podium after some time and declare their candidatures. The same way, you can get into the next big auction with a smarter mind.
3. Due Diligence
Once you have made up your mind to buy a property that is set to be auctioned, organize your purchasing entity if you aren’t going to buy it in your own name. Get a financial approval in advance so that you can attend the auction. Ensure that you know the value of the property and equip yourself with the power to quote a walk away price that you will be able to pay with no pressure at all.
Meanwhile, hold your cards close, because many property agents will be spying to find out what you intend to offer and beat your negotiating power. The last thing before you are set to go, get an experienced buyer’s agent who is smart.
4. Ask the Selling Agent for Comparable Sales
It’s your right to know why the property is worth the asking price, and it’s only the selling agent that can give you that vital information. A good selling agent will show you their past sales around the block or in the same street. That’s the best way an agent can help you know the value of the property you are willing to buy in an auction.
Also, if you plan to increase the value of a home in the future by renovating it, then inquire first. You can ask the selling agents if anyone has renovated the properties in the area and if they are kind enough, they will take you to a renovated house.
5. Arrive Early on the D-Day and Stay Ahead
Arrive at the venue before the auction starts and survey the landscape. Be confident and start by bidding high, close to where you have reserved. Mention your offers instead of just the increments.
Ensure you are the highest bidder and be ready to miss out. It might go either way, you know? Be prepared for the outcome.
Everyone would love to be a homeowner, and one of the easiest ways to own one is through auction. If you really want to win most of the property bids, consider the ideas above, and you will definitely have an upper hand.