Property auctions have risen in popularity for the past years and for good reason. It comes with major perks and benefits not just for sellers but even for buyers. But we’re not here to talk about those. That’s a story for another article. Today, we’re here to establish what you should not and never do at these real estate acquisition events.
- Never come without financing. Property auctions often require a down payment right then and there. After winning a bid, you will be asked to pay for the upfront costs and the remaining balance shall be payable in the next 28 days or as the term of the contract stipulates which is often a tight and short payment period. Additionally, real estate costs a lot and it takes time to pool and/or arrange for these resources so preparing one’s financing ahead of time is not only advised but required me.
- Never miss out on research. See to it that you run a background check on both organizers and properties. The auction house likely has a website or even if they don’t, information and reviews about them should be available on the internet. See to it that you read up on those. Familiarize yourself with the processes too as each organizer is different from the next.
- Never forget to visit the property. Researching about them is one but seeing them for yourself is another. Both are equally as important. Why bid for something that may not be worth it after all?
- Never come in late. You want to get a good grip of yourself. You’d want to observe the environment and see who you are up against. Coming in early should give you enough time to look around and pace your strategies.
- Never show your cards. Keep your plans (e.g. which properties you’d be beidding on and how much you are willing to shell out for them) to yourself. Don’t divulge them to both sellers and co-attendees as they can use that against you.
- Never let emotions rule above logic. Property auctions are highly competitive and intense platforms that trade real estate assets. So much is at stake both for sellers and buyers and one should make it a point to keep one’s head above one’s heart. Sometimes, you might feel like engaging in a bidding war without realizing that you’re doing it for the thrill or you’re going beyond budget. Don’t.