How to Make Money at Real Estate Auctions
Essential tips for buying houses at an auction
The other viable investment option is to buy houses at an auction. Once you have decided that you are going to look into buying a property at an auction, there are some essential boxes that you must tick.
- Running a thorough and comprehensive research of the area. This research should include the comparative prices and sales experienced in that area.
- Try to attend a few other auctions without actually bidding on anything. This is so that you can familiarize yourself with the whole process.- Once you have a good read on how much houses in the area auction for as well the entire process, get your finances in order.
- At the auction, make sure that you have set a limit on how much you can use.
- Inspect the property or do a drive by if possible. Before you bid on any given property, ensure that you have done all the necessary inspections. This means that you should identify and inspect your intended bid during the research phase.
- Make sure that you have the legal end of things covered by seeking advice on any possible loopholes.
- Once you start bidding, you need to know that you should have at least 10% of the price available to act as deposit. This is just in case your bid succeeds.
- You will need you I.D. to log in any bids, you need to make sure that you have registered on that day.
- Bid with confidence. Do not let others within the room intimidate you. You should know that bidding is a personal process and most people do it in a manner that is suitable for them. There are those who will be loud while there are those who will sit quietly and wait to jump in at the appropriate time. You should do so in a manner that makes you comfortable.
Should the highest bid reach the reserve price, then the property will be sold to the highest bidder. However, if the highest bid doesn’t reach this price, then the vendor may choose to withhold the property and as such, it will be passed in. In these type of cases, the vendor could then open a line of negotiations with the highest bidder to try and get to an amicable agreement. It is often best to be the highest bidder as you will get the first right to negotiate with the vendor.
If you are lucky enough to buy the property, you will find that fixing it up some and then putting it back on the market can fetch you potentially awesome profits. It is a simple yet lucrative process that has the added advantage of being straight forward. If you want to invest and make great profits, team up with us.