01
Apr
2010
Buying at Auctions: What to Do

Auctions are always one of the most time saving and effective ways of purchasing repossessed property and selling private property. This method is speedy and sure and does not involve a situation where the seller may raise the asking price at the very last minute. Once the hammer falls the contract is set. Buying repossessed property at an auction is a fair process. Waving your hand about in the air long enough and the repossessed property is sure to be yours soon enough. When all is said and done the key to having a good auction is to properly prepare yourself. Always be mindful of the fact that the responsibility to enquire and prepare before the gavel hits the block, falls entirely upon the owner. At this stage the owner is bound in contract to his new purchase.

Auctions are plenty of fun and can either get in on the action or simply be a spectator. No matter what you choose, always keep the following few things in mind.

1) As with anything in life one must start by looking, listening and learning. It’s a given that the best and most effective way of learning is through quiet observation. Attend one or two auctions and simply learn by watching. Gaining this vital knowledge will familiarize you with the workings of an auction so you may be prepared and avoid expensive mistakes.

2) Make an effort to attend previews as often as possible. The property advertisements will often show the viewing times and contact details of the person responsible for the auction. Take the opportunity given to view the property prior to its auction. This way you are able to see firsthand what the repossessed property is actually worth.

3) Always be prepared for any eventuality and be familiar with what you are viewing. Do the research early on to increase your chances of paying a reasonable price at the auction. Ignorance can lead you to your downfall.

4) Familiarize yourself with auction terms. If you know and understand the meaning of these terms you are more likely to follow what is being said.

5) Reading the auction directory will list the auction properties in their selling order.

6) Before you may bid at any auction, you must be registered. If you are doing an online bid at places like myroof.co.za, this step is easy as pie. Registering is like your immigration form or passport.

7) Always remain calm and confident during the bidding. Decide before hand what you want and how much you’re willing to bid, then stick to it.

Repossessed property auctions can sometimes become a circus of grand spectacles and impressive bids but sticking to these tips is bound to have you basking in the glory of your newly purchased repossessed property.

Compare x Properties ×