Buying at Auctions
A quick way to purchase a property is through auctions. For starters, here are tips on helping you get a head start.
The first step in participating in an auction is getting pre-approved. Getting pre-approved allows you to bid within your means since you know how much you can spend.
Read the Contract
As a buyer, if you're interested in a certain property before it goes to auction, you can get a copy of its sales contract from the real estate agent handling the property. With this, you can now start doing small negotiations. But, before proceeding to make negotiations, make sure to get legal advice to ensure the validity of the contract.
Do Your Research
Researching different market prices and comparing it with past market values gives you an idea if the property you are eyeing at the auction is well-priced or if you can sell it in the future and get capital growth potential in store for you in 5, 10 or 15 years from now.
Aside from knowing if the property's neighbourhood fits your requirements, you should also inspect the property. Take note of all the property’s defects you see during the inspection. This will help you see the cracks of the property and if it is worth your money or not.
Treat it as a business deal
It is an advantage if you consider the bidding process of the auction as a business deal. This will help you consider your options and come up with a clear investment decision.
If you are finding it hard to control yourself in bidding or easily develop an attachment to material things, ask the help of your family members or closed friends to help you think clearly during an auction. They can help you in making a clear and practical decision you will not regret.