Most people, particularly first-time buyers, may find it daunting to buy property at auction. However, auctions are one of the quickest and simplest ways to acquire property. But how can you increase your chances of success? Here are some useful tips to help you plan your property auction strategy.
4 Useful Tips To Buy Property At Auction
1. Examine the area thoroughly
Doing extensive research on the neighbourhood around the auction property will help you decide how much you want to bid. Take note of the sales growth trajectory and rate of progress in the area. Consider the neighbourhood’s accessibility, appearance, amenities, and future development plans. If you carefully consider the location, you will end up with a more valuable property, which will likely be worth more in the long run.
2. Check the property’s appraisal to make sure it is accurate
The selling price of a home can be affected by an appraisal. It could be a problem if the appraised value doesn’t match the price you paid for the property. If the house appraises for less than what you agreed to pay, you may have to bring more money, or talk with the seller to make the deal work.
3. Pre-register with the selling agent
Prospective bidders are required to register with the selling agent in advance. Before receiving a bidder number, you must first show identification with your name and address. Although pre-registration is required to participate in the auction, it is not necessary to place a bid.
4. Maintain a strict budget
Prepare for an auction by deciding how much money you are willing to spend. Set a limit for yourself and commit to sticking to it. There is always the risk of giving in to the excitement of the moment, but this risk can be mitigated through forethought and setting reasonable boundaries.
Many of our clients have received guidance from PRD during the complex property auction process. Please get in touch with us, and a member of our staff will be happy to answer any questions you may have.