How to Buy a Property at an Auction
Step 1: Research the property. Get its size, amenities, how much is owned against it and what it is the opening bid.
Step 2: Compare the sales prices of similar properties in the area so that you have a good idea of what the property is worth. Compare sales of properties with the same number of bedrooms, bathrooms and square footage.
Step 3: Get financing. Typically, homes at auctions require a 5-10% deposit or one thousand down and the balance of the deposit within a week or your lose your one thousand. Check on the financing terms and conditions.
Step 4: Know your price limit. Auctions work on creating an atmosphere of agitation and excitedness. Don’t get swept up in the moment. Know how much you are willing to spend and stick to it.
Step 5: Be prepared to walk away. Don’t feel as if you have to buy something. if the deal isnt right for you, then its not a deal.
