Strategies to get a good deal at property auctions

Once you have set your mind to buy your dream home you would surely be in the lookout for

the property being sold at the auctions. Chances are there that you may not have been to the

auctions before or even purchased a house before. And you would be a little worried that you

won’t know what to do.

You need to keep in mind certain things for getting a good deal at the property auction. It is

important to verify if you have finalized all important details before the auction date. For

getting a fair deal, extensive preparation is essential. You need to familiarize yourself with the

auction process by visiting as many auctions as you can. Find out everything that you need to

know about bidding by asking questions about the auctioneers. They may use some tactics and

tricks to encourage the people to bid. Here you have to become competent by recognizing

these tricks and tactics being used.

It is important to inspect the property before the auction date. Here the main point is being

objective and inspect other properties as well. By doing this you can make an educated guess as

to a fair purchase price. Make sure that you would not exceed your maximum amount that you

are willing to pay on the auction day. However if necessary you can arrange an independent

valuation. You can seek help from the real estate agent and clarify yours doubts. And also you

can request for the copy of the contract that includes condition report and study it carefully. If

possible finalize the home loan arrangement after visiting your lender. Usually you would be

asked to pay a deposit that would count up to 10% of the purchase price in order to ensure that

you have the funds available.

One thing that you need to keep in mind during the auction day is that the auctioneer is

employed by the seller to get as good price as possible for their house. Many times a good

auctioneer would force the bidders to exceed their maximum amount by encouraging them to

enter the bidding early and maintain the excitement throughout. Auctioneers are experts at

recognizing interested parties and would use their knowledge to set a reserve price at the UK

property auctions. You can also trick the auctioneer by showing less interest so that the seller

would lower their reserve. Keep the following tips in mind during the auction.

Make sure not to bid before you have to. You need to wait until the reserve price has been

reached before entering bidding. This would surely confuse the bidders and may force the seller

to lower the reserve. Plan your bidding and work out your tactics. You need to stick to your

strategy whatever happens. The tactics can be learnt if you pay visit to other auctions like

changing increment of the bids away from the auctioneer’s chosen amounts. This would surely

intimidate fellow bidders and shows your confidence. These two tips would surely prove to be

useful in bringing out a fair deal.

Source: Property auctions