Auctions Houses 7 Tips

First of all visit Auction Panda to find the auctions

Auction Houses tip 1: Believe nothing and check everything.

With auctions, always assume the agents are not telling the truth. Some may tell you the truth, but if you treat everything they say with suspicion, you won’t be as easily hurt. There are so many lies told that you can’t afford to believe anything until you have checked it out thoroughly.

Auction Houses tip 2: Understand the “Quoting lies”

Experienced buyers know that agents under-quote the selling price by about 20 percent. So, if the agent says “Bidding to start from R100 0000”, the price is likely to be somewhere around R120 0000.

Auction Houses tip 3: Never tell agent anything of importance

If you don’t feel comfortable with the agent – and the chances are that you will never feel comfortable with an auction agent – tell them almost nothing. Just ask questions

Just remember that this is the person who will deliberately mislead you before the auction with the quote, at the auction with fraudulent bids and after the auction by telling you how ‘lucky’ you are. You can’t afford to trust such agents.

Auction houses tip 4: Know the true value

The time and cost of basic research can pay handsomely. Obtain the sales details of similar homes in the area.

Auction houses tip 5: Get legal advice

Some homebuyers try to save hundreds of rands and in doing so they risk thousands. Don’t let this happen to you. If you are keen to buy a home at auction, consult a lawyer before you sign anything or spend any money. A home costs hundreds of thousands and a lawyer costs hundreds. And remember, the last person to take advice from about a real estate auction is the auction agent. You can have your lawyer speak to the agent on your behalf.

Auction houses tip 6: Don’t bid too soon

The most important rule at an auction is NEVER BID UNTIL THE PROPERTY REACHES RESERVE. Until then, it is not for sale and it makes no sense to bid on anything that is not for sale. No matter how much pressure you receive, do not play into the agent’s hands by bidding too soon.

Auction houses final tip: Keep your max price a secret

Once the home reaches the sellers’ lowest price (the reserve), it is going to be sold to the highest bidder. Let’s say the reserve exceeds your highest price, under not circumstances will you exceed your highest price because you cannot afford to.

To find the best auctions visit Auction Panda