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 a property auction:
#1.Check Out The Property
Before you purchase a property at an auction you will want to preview it. 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.