Commercial property auctions serve as a great avenue for investors and sellers alike. Although competitive in nature, it’s possible to score a sweet deal. In fact, many buyers are able to sweep assets for lesser than what they would have been sold for had they been traded in the usual course of things.
But auctions aren’t that simple. It’s not enough to make the highest bid. There’s a lot more that goes with it and being the highest doesn’t always mean winning. But if success is what you seek, the following reminders should do you good.
- Understand the procedures and requirements involved. – Don’t go blindfolded. You can’t feel your way through without prior knowledge otherwise you’ll see yourself at the losing end.
- Acknowledge that not all auction houses are the same. – Procedures and requirements can vary so be sure to check every time you plan to participate in one. Don’t assume that they’re all the same because they aren’t.
- Prepare your financing ahead of time. – You are likely going to be asked an upfront security deposit and down payment upon winning a bid. You need to be prepared otherwise the battle you fought would be futile.
- Run a background check on the properties you’re interested in. – Research about them and even pay them a visit. You cannot acquire or bid for something that you haven’t checked up on. That’s just ridiculous.
- Have a chartered surveyor validate and uncover facts. – Call in a professional to help you assess and examine the property. Brochures and newsletters are likely to be handed out weeks before the auction so you have all the time to do this.
- Play your cards as close to your chest as possible. – Never divulge your interests to anyone. Not to the sellers and brokers and most especially not to other bidders. They can use the information against you.
- Set a spending limit so you don’t go overboard. – Offering to buy an asset for far higher than its current market value puts you at a loss. Don’t let your emotions get the better of you. To avoid engaging in a useless bidding war, set a spending limit for yourself beforehand.
- Don’t bid on your first auction. – This may sound ironic to you but it has its merits. Experts suggest for you to observe rather than participate during your very first auction. It helps you understand and learn at a personal and interactive point of view. Commercial property auctions are in a way a battlefield. Think of this as benchmarking.
Do visit https://www.singerviellesales.com for more on property auctions.