Plan Before Getting Into an Auction
If you do not know the tricks that are used at auctions, you are sure to get hurt. If you like to take the risk, here are some rules to protect you and minimize the damage.
Consider nothing and check everything
With auctions, assume that the agents may lie to you. Sure that, some may tell the truth, but if you can treat everything they say with a suspicion, then you won't be easily hurt. There are a lot of lies told that you cannot afford to believe everything until you have checked it out thoroughly.
Make out the true value
If you are feeling that you have an excellent chance of buying the home, you must consider contacting a registered valuer for a correct and unbiased opinion. The money which is spent on a valuation is well worth the risk. It will be far easier for everybody if all home had an independent assessment before they were sold. Both sellers and buyers will have the gain of independent and unbiased information. Yet, a valuation, while unbiased, is still just a guide. If you love the house you may willingly pay more than the 'value'. But at least you are having the benefit of estimation on which to base your decision.
Get needed legal advice
Some house buyers try to save hundreds of dollars and in doing so they usually risk thousands. Do not let this happen to you also. If you are so keen to buy a home at an auction, you could consult a lawyer before you sign any agreement or spend any money. A home may cost hundreds of thousands and a lawyer also costs hundreds. And keep in mind, that the last person to get advice from about a real estate auction is the auction agent. You could have your lawyer to speak to the agent on your behalf. Some lawyers may even accompany you to the auction. Good lawyers are always a great value when buying a home.
Do not bid so quickly
The important rule at an auction is that don’t bid till the property reaches reserve. Until then, it is not meant for sale and it makes no logic to bid on anything that is not for sale.
No matter on the pressure you receive, not play into the agent's hand by will too soon. Agents are very desperate for early bidders, as they may do anything to get the bidding up from its low beginning. Dummy bids are a vital part of the auction system, despite the denial of agents and Real Estate Institutes. But these dummy bidding stops once the home reaches the reserve price and is formally for sale. And this is the only time you should bid.
Keep your peak price a secret
Once the home reaches the sellers' lowest price, it will be sold to the highest bidder. The losses for seller and the win for buyers are caused because the auctions start at a low price instead of high price. And when anything starts low, the chances are that it would finish low - or lower than it would have finished if it had started high.
Jacob Christopher is a seo copywriter for property auctions and property auctioneers. He has written many articles in various topics like UK Property auction, Investment Houses, UK Auction List. For more information visit: http://www.propertyauctionzone.com Contact him at jacob123seo@gmail.com
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