Buying at Auctions
A fast and practical way to purchase a home is through auctions. Below are some pointers that can help you get a head start.
It is never a good idea to place a bid when you are not yet pre-approved. Getting pre-approved allows you to bid within your means since you know how much you can spend.
Read the Contract
Before a property that you want to buy goes to auction, try to get a copy of the sales contract from the real estate agent handling the property. Even before the property goes to auction, you can start doing small negotiations. Make sure though that you seek legal advice to ensure the validity of the contract.
Do Your Research
Research on different property prices and look into past & current market values to give you an idea if the property you want to buy at the auction is priced well or not. Inspect the area too. Study the location if it meets your neighbourhood requirements.
Additionally, it wouldn’t hurt to consider the possibility of selling that particular property in the future. Research on the capital growth potential in store for you 5, 10 or 15 years from now.
Take note of all the property’s defects you see during the inspection. Arrange for a building and pest inspection to see the actual condition of the property. What may seem like a bargain at first may not be the case in the future, especially if you need to shell out huge sums of money on remodelling and repair.
Treat it as a business deal
Treating the bidding process as a business deal is an advantage. It can help you make a clear investment decision.
For impulsive buyers who easily develop an attachment to material things, seek the help of a family member or a friend who can guide you during the bidding process. They can help you make a clear and practical decision.