Tips For Bidding At Real Estate Auctions
Whether you are searching for a home or investment property, bidding at a real estate auction can be stressing. Following are some tips to get the best results.
Familiarity Breeds Confidence
Confidence is essential to success at an auction. If you bid with assurance, this can intimidate and deter other bidders. However, it can be difficult to be confident without experience, so it is a good idea to attend a few auctions as a spectator to become familiar with the process.
While at your practise auctions, stand in a position with a good view of the bidders and the auctioneer. Once you attend several, you might notice a difference in the pacing of the bidding the incremental jumps in bids. This general familiarity will stand you in good stead when you finally jump in yourself to bid.
Researching Property Values
Knowledge breeds confidence as well. Before bidding at an auction, make sure you have done your research on the locality and the particular property; nearby real estate agents, such as Azure Realty Cayman, are a good place to start. Over a period of weeks or months, you should follow up on properties, studying their features and noting their selling price. This research will improve your judgement on property values overall.
Before you attend the first auction that you intend to bid at, make sure you have established an absolute ceiling price. Your research will provide you with confidence in your estimation of value.
In your experience of attending auctions, you might have been to several where the property didn't hit the reserve price and was passed in. If this happens to you--a property is passed in and you have hit your ceiling bid--don't panic. Firstly, you can attempt to negotiate post-auction, or philosophically let the property go. Maybe it wasn't meant to be.
Auctions are emotionally charged events. Your aim should be to remain as calm as possible and to not get caught up in the excitement of the moment. Familiarity with the process should help you as anything new inevitably generates tension.
Remember that auctions are inherently uncertain, however, as the outcome is not known until the end. This uncertainty over the outcome is what makes sports entertaining and at times, tension filled. Once you acknowledge the uncertainty of auctions, you are in a better position to deal with it. By becoming familiar with the process, and researching the market thoroughly, you should be in the best position to successfully bid and win at auctions.