Many potential property buyers are under the impression that the only way to win a house auction is to be lucky enough to place the winning bid. However, this is not always true because in some instances, you may actually be the winner by walking away from a particular auction – especially if the price climbs too high or the property does not pass inspection. Below are a few tips that will indicate when it is time to throw in the towel at an auction.
The Auction Bids Exceed your Pre-determined Limit
Sadly, far too many potential homebuyers get so involved in the bidding process that they start placing bids for far more than they can afford to pay. This means that they end up being stuck with a property that they will not be able to afford over the long term – especially if large maintenance and repair bills arise for items that were not disclosed at the auction.
You Aren’t 100% Sure of what you are Bidding for
Although it can be a lot of fun to know that you have won a house auction, it is never a good idea to keep bidding unless you know what you are bidding for. One of the best ways to get to know the property in question is to have thorough pest and building inspections carried out on the property in question ahead of time. It is also strongly recommended that you hire an attorney who specializes in dealing with property contracts to look through the paperwork ahead of time, as this will enable them to inform you of any potential pitfalls that there may be.
You Haven’t Thoroughly Researched the Suburb Ahead of Time
There is little else worse than enjoying the emotional high of winning a property auction, only to find out that your so-called investment property is located in the suburb or street from hell.
You and your family may move into the property and discover that the neighbours are less than friendly, the suburb has been earmarked for major development projects (resulting in significant levels of noise and dust pollution) or property values are lower than you initially realized.
Before you even consider placing your first bid on any auction property, it is imperative that you perform extensive research on the suburb ahead of time. For example, are there sufficient amenities within close proximity to your home? Are parks and play areas safely accessible for kids without them having to cross major roads or intersections? Will you hit major traffic to or from work each day? Do property owners in the area generally take pride in their homes and keep the area looking neat and attractive?
Although you may be keen to find out what it feels like to win your first property auction, you must ensure that you don’t allow your emotions to take over the bidding process. If you have your eye on a property and would like to find out if it will be viable to bid on or not, contact us to find out about having a complete inspection performed today.
