After several years of diligently saving money, I’m nearly ready to purchase my first home. Because I’ve been thinking about buying a home for so long, I know exactly what I want my house to look like. I desire a place that has three bedrooms and three bathrooms. I also need a quiet space to set up my home office in. I want a massive, walk-in closet in my master bedroom. My master bathroom needs to have double vanities, a tiled, walk-in shower, and a Jacuzzi tub. On this blog, I hope you will discover how to set priorities during your new home search. Enjoy!
You can find properties at below-market values if you attend land auctions. Successfully attending an auction requires knowing how to evaluate real estate and how to present yourself, though. Use these tips, and you should have more success at land auctions that you attend.
Inspect the Property Before the Auction
Many real estate auctions have preview periods, which allow interested buyers to look at the property. The window for inspecting the property might be a few days or a few hours before the auction commences.
Inspect the property as far in advance as you're able to. This will give you the maximum amount of time to research any questions. You may want an engineer or contractor to check a specific issue, or you might want an attorney to review a legal matter regarding a right of way, title, or lease. It's difficult to resolve matters if an auction is imminent.
Don't Share Unnecessary Information
Information puts you in a better position when bidding on a property, and sometimes it's the difference between getting a deal on a property, not winning, or overpaying.
Don't share any information unless you have to. This includes what you've learned about a property and details that might suggest how much buying power you have.
Present as a Serious Buyer
The winner of the land auction will be the highest bidder, but sometimes showing confidence intimidates others and discourages them from bidding. If you present yourself as a serious buyer, people may be less inclined to bid against you because they assume you'll pay a lot (even if you don't plan to).
Presenting yourself as a serious buyer requires making yourself known and being confident. Sit up front or stand when the auction begins, so everyone can see you. Speak clearly and loudly when you bid, and say the full amount. For example, say "one hundred thousand" rather than "one hundred," even if everyone knows that you're bidding in thousands.
Check the Clearance Rate
The clearance rate refers to what percent of real estate auctions are sold to winning bidders. If no one bids on a property or the price doesn't meet the required reserve, the property won't be sold.
Knowing the clearance rate tells you how competitive the market is. A low rate indicates that not many buyers are purchasing properties, while a high rate reveals high buyer interest. You can adjust how aggressive you are or aren't accordingly.
For more information on land auctions, contact a professional near you.