How You Win at Property Auctions
Property Auctions are a fantastic way to gain property at a far lower cost than more conventional methods.
The thing is… People treat Property Auctions like a gamble, and Like most gambles, a high payoff also involves a higher risk.
Whereas you do stand to gain property at low cost and a significant profit margin, you are also exposed to greater risks such as damaged property, property not being as described and some hidden fees in certain circumstances.
Property Auctions are booming in popularity due to a significant rise in repossessions in response to the current economic downturn. Apart from repossessions, another popular reason for selling property at auction is for sellers who want a quick, hassle-free sale in exchange for a lower selling price. This is often important for developers and builders who may have most of their funds or assets tied up in the property itself.
Property Auctions draw large amounts of people hoping to gain from this system, but many fall prey to the downsides due to lack of knowledge, lack of experience, or both. The key to benefitting from property auctions is to pursue the deals without falling into one of the common property pitfalls.
One of the most common of these is buying property at auction only to find that it is in a far worse condition than was previously believed at the point of sale. Sometimes this may be something as benign, yet expensive, as a hole in the roof or a structurally unsound wall.
At other times this can be far worse, such as that which happened to Colin Todd who appeared in the Telegraph in 2011, because he bought a property at auction only to find it demolished by the council by the time he got there due to a lack of ‘structural integrity’. The seller had not notified Colin that the house was in such bad state, and it was demolished just after the auction in order to prevent danger to the public. A demolition which Colin Todd ended up paying for in addition to the £37,500 cost of the house.
Another pitfall people who lack experience frequently forget is not reading the fine print. Not reading the full contract or legal document is a serious source of headache for many people getting into property auctions for the first time. It’s not like skim-reading your iTunes Terms of Service or assuming your new laptop warranty has every bit of cover you need without reading it – legal documents in property are well worth reading and reading well. Most people invest in a property focused solicitor for this purpose alone.
Houses and flats sold at auction are often in need of repairs, which can prove very costly very quickly.
So, it is apparent that to properly profit at a property auction and protect yourself against some serious financial damage you require experience and knowledge. However, this experience and knowledge comes from making many costly mistakes and learning from them, which in turn doesn’t really help you in the short term if you’re thinking about getting into property auctions, or have already began dipping your toe into that brave new world.
What a number of hugely successful property moguls have done during their first steps into the world of property is to find a more experienced person to give them tips and techniques, therefore drastically increasing their success rate.
No, we don’t suggest you go banging on the door of Joseph Safra or Amancio Ortega. The 21st century has brought with it all the knowledge you can handle right at your fingertips. Some of the best advice you can get is in digital format, with real, experienced property experts ready to impart their own tips, techniques and experience on a global scale to anyone with the drive and ambition to listen and learn.
Informative digital media such as Auctions Insider Secrets Video Series have a massive trove of information for subscribers and can really make the difference between snagging a bargain and having to shell out for extremely expensive repairs or, worse, finding out a property is entirely different to what you expected.
Information from real tried and tested experts allows you to not only avoid pitfalls but also know what you need to bring on the day, know how to get the best deal and know what preparation needs to go into making a purchase at auction.
Some of the advice provided in services like Auctions Insider Secrets Video Series revolves around simple tips such as the knowledge that as soon as the gavel hits the desk, you’re stuck in a legally binding contract of which a change of heart is no longer an easy possibility. This means not getting carried away with bidding, and not trusting the guide prices as much as it is implied you should do.
Getting a survey for a single property is also a fantastic idea, but if you want to buy several properties then the costs start to really add up. Surveys are a relatively costly way of mitigating risk, so figuring out when to use them and when to roll the dice is another thing that watching a video guide series and personal experience will teach you.
Mentorship media like Auctions Insider Secrets Video Series also provides information that a beginner or interested party may never have thought of, and yet is vitally important.
An example of this is property insurance. As soon as the auction for that particular property results in the gavel coming down in your favour, you’re liable for the property and it is solely your problem.
Get insurance for it in order as soon as humanly possible, because the average person’s luck means that the minute you purchase that property without immediately sorting the insurance then a hurricane will spontaneously spawn overhead!
The Auctions Insider Secrets Video contains sage advice from real industry experts who have experience in the very auctions you aim to attend. It enables you to learn from their mistakes without you experiencing them first hand, and helps you win better properties with improved profits.
People say that Property auctions will always be a gamble, but with the correct and current information on property auctions, you can make property auctions your chosen method to buy fantastic investment properties, or to even sell properties at a higher price than if you went to your local agent.
If you’re serious about attending property auctions and starting to get into the exhilarating, hugely profitable world of property then there can be no better source of information than this highly sought after video series.
You can get Auctions Insider Secrets Video absolutely free of charge, potentially saving yourself tens or even hundreds of thousands in fees, costs, and pitfalls.