What is a property auction?
Auction, a very well known concept to all, auction is a place where you can buy or sell things or properties by bidding. Property auctions have been around for a long time now, they are gradually gaining importance as the way they buy and sell property effectively. It is a process where you can have lot of fun because it is always filled with excitement and eagerness, apart from the serious issue for which everyone is gathered there for.
Different types of properties that are auctioned.
It is a type of property, where the owner of a particular property does not pay the due on time or did not pay the due for quite some time, the property will be taken back from the owner by the lender, so this property is then auctioned, when these kind of property are auctioned, they can be taken for a lesser amount than their original value, it might be lesser than, for which the lender would have bought that property for. So don’t ever think it is an advantage for people who bid for this property. The lenders know the knack of it, they reduce the amount here and get back everything or even more in miscellaneous like administration fee, registration payment and rise in interest currently and so on.
General public, who are willing to sell their property, auction their property, and this is known as private sale.
Commercial property is the one which are auctioned very often and this is the proper property, where auction takes place very professionally and the persons who attend commercial property auctions will all be real estate big shots who are into this seriously.
Five important tips to follow while bidding in a property auction
One: fix a budget for yourself, and then go in for an auction, without having a proper limit for yourself you won’t be able to bid effectively. First know the value of the property, fix your budget accordingly that it is just little costlier than its original value. And, if the property is 200 thousand and you if you need to do another 200 thousand of repair work and other stuff’s, believe me you will be able to sell it only for some350 thousand, so you will ultimately go in for a loss. So make sure you bid the proper amount.
Two: always have a limit for your bid and if your competitors have raised it too much and if it’s out of your limit, don’t think too much and bid for more, quietly leave it. Because it’s quite natural that you tend to immediately ask for a higher bid than the previous one, so make sure your head is on your shoulders and mind you it’s your money.
Three: go and visit the property before you go for the auction. It is always good to verify the sight before you go for a bid.
Four: read the contract terms and conditions carefully before deciding anything important and make sure you read whatever the document it may be once or twice before you sign it.
Five: go to the venue well in advance, because they give a lot of announcements in the beginning which you should not miss, because it will help you a great deal in the bidding process.