Tips About Property Auctions
Savvy real estate investors and many others around Australia know that some incredible deals are to be had in property auctions. If you're keen to get in on the extraordinary savings, you should first educate yourself as much as possible. You can do so more easily by reading the following tips.
Get A Feel For The Price Range -
There's no point in even looking for a loan if you aren't even sure what the going rates are for homes in your area. Also, knowing what a fair price is can help you avoid getting ripped off.
Get An Independent Valuation Done -
If you have your eye on one property in particular, have an independent valuation performed on it prior to auction day. All too often, people get their hearts set on a particular home only to discover that it wasn't worth nearly what it was auctioned off for.
Arrange Lending Ahead Of Time -
Engage a mortgage broker to provide you with a range of lending options. Usually, 10% is due when an auction closes; the rest is due at the end of the settlement period.
Don't Bid Until The Auction Reaches Reserve -
Until the reserve is met, the house isn't officially for sale. The reserve represents the lowest price that the seller is willing to go down to. Keep your high price close to your chest and never reveal it to anyone.
You Do The Asking -
Never answer an auction agent's questions about your intentions concerning a property up for bid. Instead, make it a point to strictly ask the questions. Make it clear that you will, under no circumstances, answer any questions posed to you.
Stick To Your Guns -
Before the auction starts - before you even leave to go attend it - set a firm maximum price. No matter what, do not waver from it. In all of the excitement, many people become swept up and end up bidding much more than they can truly afford to.
Watch And Learn -
Optimally, you should try to attend a lot of different auctions before attending one that you'll actually be bidding at. This way, you can learn the ins and outs of the process and become more comfortable with it, too.
Get The Right Loan -
Always remember that agents almost always underquote. If you prepare thoroughly and plan your home loan, everything should work out just fine.
Get A Feel For The Price Range -
There's no point in even looking for a loan if you aren't even sure what the going rates are for homes in your area. Also, knowing what a fair price is can help you avoid getting ripped off.
Get An Independent Valuation Done -
If you have your eye on one property in particular, have an independent valuation performed on it prior to auction day. All too often, people get their hearts set on a particular home only to discover that it wasn't worth nearly what it was auctioned off for.
Arrange Lending Ahead Of Time -
Engage a mortgage broker to provide you with a range of lending options. Usually, 10% is due when an auction closes; the rest is due at the end of the settlement period.
Don't Bid Until The Auction Reaches Reserve -
Until the reserve is met, the house isn't officially for sale. The reserve represents the lowest price that the seller is willing to go down to. Keep your high price close to your chest and never reveal it to anyone.
You Do The Asking -
Never answer an auction agent's questions about your intentions concerning a property up for bid. Instead, make it a point to strictly ask the questions. Make it clear that you will, under no circumstances, answer any questions posed to you.
Stick To Your Guns -
Before the auction starts - before you even leave to go attend it - set a firm maximum price. No matter what, do not waver from it. In all of the excitement, many people become swept up and end up bidding much more than they can truly afford to.
Watch And Learn -
Optimally, you should try to attend a lot of different auctions before attending one that you'll actually be bidding at. This way, you can learn the ins and outs of the process and become more comfortable with it, too.
Get The Right Loan -
Always remember that agents almost always underquote. If you prepare thoroughly and plan your home loan, everything should work out just fine.
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