Property auctions are as straightforward as they sound. But its self explanatory definition does not in any way reduce the fact that it’s a daunting but otherwise rewarding challenge.
We’ve seen a lot of investors come in and go home with grins on their faces, a deal clipped in the palm of their hands. But there too are those who obviously took a beating either because they lost an opportunity or because they miscalculated their strategies.
We’d all love to be the former never the latter but if we commit the following blunders then we’re nearing a serious case of property auction regret.
Before doing anything major, auctions and real estate for instance, we have to be fully equipped with knowledge, understanding and research. Lack thereof or even the slightest deviation can easily put as at the losing end. There’s a lot to know when attending property auctions. There’s the procedures and requirements set by the organizers, the assets being sold off, what constitutes value in the market and the list goes on.
Money takes time to pool. Even credit takes time to process. It only makes sense that we prepare financing ahead of time so it becomes available even before the auction date. Keep in mind that these events often come with strict payment schedules and will most definitely demand an upfront down payment on the day of the auction itself.
Or its awful sibling, the lack thereof. We need to plan our tactics and this involves having to identify one’s needs, sources of funds, financial capacity or spending limit as well as a short list of prospects which we have already looked into, have had surveyed and even visited where possible. Property auctions are highly competitive and if we come without a plan, we’re planning to fail.
Going in property auctions is pretty much like going deep into the jungle only instead of wild beasts, we’re dealing with educated ones who come with unique strategies and game play. This makes it important for a bidder to be very wary especially when it comes to their emotions and the information they share. Everything we do or say can be used against us. If we’re too obvious for liking a particular asset for example, other bidders may get curious and make a case for added competition.