Property auctions are a fantastic source of low cost houses, flats, shops, commercial premises or land. Finding the right property, at the right price, in the right location can be a very daunting prospect for many potential investors.
Property auctions are now more popular than ever, and due to this the prices of properties being sold through auction are being driven up. With such a substantial capital requirement, most investors like to take their time and not be rushed into a deal, and the pressure of an auction bidding scenario for property is completely avoided.
Many frequent property investors will tell you that that despite the pressure and emotional stress that can accompany a property auction, some of the most useful information and best deals can be obtained by paying careful attention and attending an auction with a careful strategy devoid of emotion and panic.
So what is a good strategy to employ in order to get the most out of a property auction experience?
What to Plan for at Auction?
Preparation is crucial when you are entering a potential bidding war with other investors for property at an auction. Ideally, every decision regarding the property should be made before the item is called on the roster so that you can focus purely on the value of the item when called. Auction listings are available in many cases weeks before the day the gavel is set to drop, so make use of time to inspect the property and make sure it’s the right investment for you.
Take the time to look at the property and arrange an internal viewing if possible to evaluate what you would be willing to spend to acquire the property. Speak to neighbours around the home and try discover as much as you possibly can about the property and the area. Make sure that the listing details in the auction catalogue are correct and in line with what your research tells you, if not you may have more unforeseen problems. Make sure that you are able to purchase the property in line with the conditions stipulated on the auction listing. Find out what similar properties are selling for in the area so that you don’t get sucked into an expensive impulse purchase and if you are serious, have the inspections done by professionals.
Finance will need to be arranged before and auction as the final bid and sale is a negotiation agreed upon and is binding to both parties. Finance will be needed with most houses bought on auction so ensure that you have enough organised immediately so that you are able to make the deposit should you win the bid.
Does it have to be me?
If you feel you cannot be trusted in a high pressure situation, you can arrange for a professional or use an impartial family member to do the bidding for you. Make clear stipulations as to what you are prepared to spend and should you be doing the bidding yourself, adhere to the same principles. Stick to your pre-decided goals and enjoy a safe auction with only a positive outcome possible.
If you are looking to would like any assistance or further guidance, then please drop in to my offices on Moston Lane, Manchester for coffee and a chat, or call me on 0161 681 3724.
Look forward to speaking to you soon!