How to Buy a Property Before Auction Day
If you have found a home you love and are looking to get your hands on it now, going in early could save you a lot of money.
But, going in unprepared could only take you two steps back.
Buying a property is an emotional experience and can often leave you feeling overwhelmed and unprepared. While buying a home at an auction is nerve-wracking, sometimes buying one before an auction can be even worse.
However, if you come to the table with your facts lined up and your poker face on, you are likely to get a good buy:
- Find out the true value of the property.
Casey Building Inspections says, “when emotions are high, buyers tend to overpay for properties. They have already fallen in love with the home and will simply do anything just to ensure it is theirs. But, in order to make sure you offer a fair price – for both you and the seller – you need to have a reasonable understanding of the property’s true value.
This will also give you more confidence going to the negotiation table as you know what the house should be sold for.
- Get prior finance approval. Having prior approval to be able to make an offer will place you in a stronger position and can make your offer more appealing to the Vendor. Vendors who have a number of offers will take the most attractive offer this does not always mean it is the highest offer. This also demonstrates that you are serious about buying the property.
- Find out what the seller’s motivation is.
A motivated seller is more likely to cut you a good deal – they are looking to get rid of the property as soon as possible and this is most often the case with a house going to auction.
However, they might have several different reasons for opening the property up prior to the auction. But, typically, it is just to make a quicker sale.
You are looking for a good deal and they are looking for a quick sale – it should be a match made in heaven, right?
- Find out what the agent’s plans are.
Ultimately, the agent is the one who is coordinating the sale. Once you have narrowed down the property value and the seller’s plans, try to understand what the agent is wanting to do with the property.
Are they trying to get it sold before the auction or are they really looking to hold out? This will give you insight as to how aggressively you should approach the negotiation table.
- Remember, timing is everything.
Use time to your advantage. Make your offer as last minute as possible to help force the seller and agent into a corner.
Avoid being too hasty or impatient when it comes to making your offer – this could result in losing the property to another purchaser.
The main takeaway on how to buy a property before it goes to auction is to go into the situation as prepared as you can possibly be.
Keep a cool head and try to avoid letting your emotions get in the way. Keep in mind the true value and the true intentions of all parties so that you know which areas they are willing to give on and which they are not.
Proper preparation and timing is everything when it comes to buying a home before it goes to auction.
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