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5 Things To Remember At Your First Property Auction

Wednesday, July 12th, 2017
property auctions

If you are attending a property auction for the first time, there are several tactics and tricks you can use to get a great deal. Following these tips can play to your advantage and help you avoid many of the pitfalls that new bidders experience. Here are four things to look out for at your first property auction.

Pay attention to the competition

The auctioneer runs the show, so it may be tempting to keep an eye on them instead of the other bidders. However, you should always be aware of your competition. The bids they place will change the game and could cause you to lose the home of your dreams.

Look for smaller property auctions

If you go to an auction and notice there are only a few competitors, you may be lucky. A fewer number of bidders means there is not as much interest, which could give you the chance to get a great deal on a home. A big turn out means tougher competition, so consider bidding less at smaller auctions to try to save money.

Watch out for extreme starting bids

During the auction of a foreclosed home, you may not end up bidding at all. The lender may make the leading bid, asking only for the amount they are owed. In some cases, a home has lost value and no one will be interested in placing a high bid. Sometimes, this type of auction can provide a chance to get a home for an extremely cheap price. However, be careful that you do not bid on a home that will require too much time and money to repair.

Do not fall for the knockout bid

One of the best things to do at a property auction is to recognize the tactics used by your competitors. A bidder may drastically increase the price when the bidding has slowed down. Do not be intimidated by this tactic or afraid to bid conservatively. You want to get a great deal, but also one that is within your budget.

Be aware that the sale price is not the entire price

The sale price of a home is not actually the entire price you will pay at a property auction. The auctioneer will collect the taxes and fees that go along with every property sale. The costs are paid to the auction house or real estate agents involved. If you want to get a great deal, go to the auction equipped to stay within your budget. Even if you think you are bidding on your dream home, there are always more options out there if the bidding gets out of your price range.

If you would like to learn more about attending a property auction, contact the experts at High Plains Auctioneers today. You can call us at (806) 244-6776 or Contact Us by email for more information. Don’t forget to check out our Upcoming Auctions to see what we have available!