Property auctions have long been said to be solely for experienced property investors that have a good knowledge of the Auction system and not for those simply out there looking for a good buy. The fact is that at every auction there are plants or schill bidders ready to make a bid in an attempt to drive the price up but with new regulations, the property auctions may be a very viable venue for would be home owners to buy a property.
Here are a few things that a would be buyer at an auction needs to be aware of.
Prices exclude the auctioneers commission and it is essential that you take this into account when bidding.
Auctioneers who sell property need to be members of the Estate Agency Affairs board
You are bound to a bid at auction and should have your finances in order, be it a bond or other finance. Should you fail to get the required financing you could find yourself liable for the commission at the very least.
Be aware of the schill bidders and try to identify the real bidders.
Never get caught up in the heat of the moment, auctioneers are very skilled individuals that are able to create hype in order to drive up the prices.
These are just a few of things to look out for before you start bidding and should always do your research on the area by looking through the properties on sale in the area, finding out what the rates and taxes are for the area, check the proximity to schools and shopping centers and doing a good drive around the area in the weeks preceding the auction.
Property Auctions have never been regulated before and the new regulations are aimed at making the auction industry more accessible to the man in the street and not just for experienced property developers. The fact is that the banks are repossessing a lot of residential property which invariably ends up on auction.