So, you love auctions, but you find yourself in a bit of a bind when you attend one. Never get caught off guard again because you can now feel prepared. Auctions can be a bit tricky because you often feel like a kid in a candy store. However, you can attend a property auction (personal or real estate) and come out on top. Here are 4 tips to take to heart before attending property auctions:
#1.Check out the property
Before you purchase property (real or personal) at an auction you will want to become familiar with different terms. There are auction terms and real estate terms and knowing both will help you have a greater understanding. Next you will want to preview the auction. You can preview real estate and estates personal property at an open house and online and some even have videos to watch. If you are serious about purchasing the property, then you will want to have a home inspection completed if it’s a developed property.
For undeveloped properties, you will want to ask about mineral rights and approved zoning. You may want to build a shopping mall (commercial use) but if it is zoned for agricultural use only you may to spend a lot more money battling a local bureaucracy to have it changed for you to do what you would like with it.
#2. Understand the difference between want and need
If you have a budget in mind when it comes to purchasing a property, then you should know the difference between a want and a need. When it comes to purchasing real estate properties, you cannot waiver back and forth. There will be a lot of serious bidders out there. Will you be one of them?
#3. Secure financing before the property auction
Unless you have a pocket full of cash before a property auction, you should always secure financing. See how much you are qualified for and be prepared to put a good amount of money down. Securing financing for an auction is a little different than other types of financing. It’s a proven fact that the more actual cash you can put down on the property then the better off you will be with the banks.
#4. Be prepared for anything
When going to an auction property prepare for anything. The property can be better or worse than what you expected. You might even be able to get a better deal than what you first anticipated. One thing is for sure, bidding on property at an auction is nothing like sifting through a property magazine. It’s a rewarding and exhilarating experience and something you will want to be a part of in your lifetime.
One should always do their research before going to buy real estate at auction and then buying at Auction is easy!