Bidding in the auction house can be very thrilling and profitable, but is can also be equally disappointing. Unlike other methods, purchasing a property like a house or land, in this process, you get to own the property without having to go through the lengthy procedures and complicated legal matters all which can turn sore at the eleventh hour. In the auction sales, you are unburdened of all the procedures and yours is to wait for the fall of the auctioneer's hammer when you are the last bidder and you get the title as the new owner.
However, the difference between getting your bargain and losing money is preparedness. Conducting a detailed research before going for the bid can be extremely valuable. The properties available for auctions are listed in the local dailies, magazines, property papers, and with the local property agents.
From this, you decide on the right auctioneers you want to deal with. Take your time to go through their catalogue to see the properties enlisted for auctioning and then narrow down to a property or properties that interest you. This helps avoid the incident of walking into the auction room and bid blindly which leave you with very narrow chances of getting the right bargain.
After deciding on what property you are interested in, the next step is to physically view it. This is done by contacting the auctioneers and they get to inform you on the viewing day or guide you through in case viewing can be done on any day. In some cases, you may consider more than one viewing so as to be familiar with all facets of the property.
Some properties, especially houses, and land are likely to be in a poor state. As such, you need the assistance of a professional for a proper valuation. You should consider taking along a developer, an architect, or any relevant expert in the field to give you more insight.
After this, your next step is to determine the price range basing on the condition of the property relative to similar properties in the area. The expert can also be useful for this although you can also just compare prices with the properties available at the local property agent's office. The auctioneers usually start with lower prices so as to entice the prospective buyers, but with the right amount in mind, you will know where to stop bidding.
The process is not complete before familiarizing yourself with the legal aspects surrounding the property. The auctioneers have the legal pact and they should avail it to you. By carefully studying it, you should be aware of issues that might affect the property cost. In some instances, the services of a solicitor may be required to help you through in analyzing covenants and similar issues.
The action procedures will require that you make at least 10% deposit on the spot and the 90% within the month, as such, take care of finances in advance. On the auction day, arrive early and register on time. Once the bidding starts, you may get tempted to bid beyond your target. This is not recommended as it may lead to loss. If someone goes beyond your budget, it is best to wait for the next property.
However, the difference between getting your bargain and losing money is preparedness. Conducting a detailed research before going for the bid can be extremely valuable. The properties available for auctions are listed in the local dailies, magazines, property papers, and with the local property agents.
From this, you decide on the right auctioneers you want to deal with. Take your time to go through their catalogue to see the properties enlisted for auctioning and then narrow down to a property or properties that interest you. This helps avoid the incident of walking into the auction room and bid blindly which leave you with very narrow chances of getting the right bargain.
After deciding on what property you are interested in, the next step is to physically view it. This is done by contacting the auctioneers and they get to inform you on the viewing day or guide you through in case viewing can be done on any day. In some cases, you may consider more than one viewing so as to be familiar with all facets of the property.
Some properties, especially houses, and land are likely to be in a poor state. As such, you need the assistance of a professional for a proper valuation. You should consider taking along a developer, an architect, or any relevant expert in the field to give you more insight.
After this, your next step is to determine the price range basing on the condition of the property relative to similar properties in the area. The expert can also be useful for this although you can also just compare prices with the properties available at the local property agent's office. The auctioneers usually start with lower prices so as to entice the prospective buyers, but with the right amount in mind, you will know where to stop bidding.
The process is not complete before familiarizing yourself with the legal aspects surrounding the property. The auctioneers have the legal pact and they should avail it to you. By carefully studying it, you should be aware of issues that might affect the property cost. In some instances, the services of a solicitor may be required to help you through in analyzing covenants and similar issues.
The action procedures will require that you make at least 10% deposit on the spot and the 90% within the month, as such, take care of finances in advance. On the auction day, arrive early and register on time. Once the bidding starts, you may get tempted to bid beyond your target. This is not recommended as it may lead to loss. If someone goes beyond your budget, it is best to wait for the next property.
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