Real estate agent's frequently recommend taking a house to auction if the house has broad appeal and is likely to secure the interest of multiple parties. It is commonly thought that doing so can return a higher selling price to the vendor. If you're looking to purchase your first home, and the properties you are interested in are selling at auction, then you need to do some preparation to learn about the auction process.
Some tips to By A House At Auction:
Before attending an auction it's important to have your finances under control. This involves prospecting finance companies and going through the process of submitting your application. When you have a written letter of confirmation you will know the extent of your buying power. This will allow you to attend auctions with designated price cut off levels.
Before you by a house at auction it is important to do some research in your area of interest. This will allow you to establish fair value levels. Talking with local residents and real estate agents can allow you to garner important insights. Going to some auctions and watching the entire process can give you a visual feel and understanding of the whole process.
Home inspection is an absolute must before buying a house at auction. Glossy sales based literature highlights the best features of a property and walking through the property can be very revealing. Factoring repair and maintenance costs will constitute additional costs above your initial house purchase commitments. It's important that you qualify the property and quantify your budget and maintenance outlays before you buy at auction.
If you're ready to buy a house at an auction, employing the services of a home inspection service could be a worthwhile investment. These services prepare written reports for clients to inform them of hidden structural defects, risks and potential repairs that may require attention. Doing this kind of due diligence can help you avoid costly out of pocket surprises that may be lurking under the surface.
If you are not comfortable with buying a home at auction then employing the services of a buyer's agent could be a worthwhile investment. Securing the negotiation experience and know how of someone with years of experience can potentially save you money and give you peace of mind at the same time. If the agent has experience operating in your area of interest then they will have a historical knowledge of fair value in the area and can advise you about this.
Whether it's your first time home or you're just new to the auction process it's important to learn about the process to avoid getting caught up in a buying frenzy.