If you plan on bidding at a foreclosed property auction then there are some tips you need to know in order to get the best deal and avoid making any potentially costly mistakes. This article will teach you some great tips for how to bid at a foreclosed property auction.
The key to getting an auction bargain is knowing the properties you’re bidding on, having a reservation price for each property, and avoiding getting caught up in the bidding frenzy. These general principles should prevent you from paying too high a price for property you expect it to be a bargain, which is most likely the reason you will be attending a foreclosed property auction in the first place.
Knowing the properties you will be bidding on means actually investigating each property you are interested in. Prior to the sale you should obtain a list of properties that will be sold and you should conduct a thorough investigation just as if you were planning on buying the home at that time. If anyone of these properties appeals to you as highly desirable then it is a good idea to take it a step farther and even employ a professional inspector.
After this initial investigation you should also form an opinion of the property’s value and what you are willing to pay. This figure will be the basis for your reservation price which is the highest price you’ll bid at the auction. Going over this price, in the heat of the moment, can have extremely expensive repercussions and should be avoided at all costs. This is perhaps the most important tip for how to bid at a foreclosed property auction.
When the actual bidding opens the auctioneer will usually set a starting bid which is generally 30 to 40% below the price of the home is expected to retail for. Keep this in mind and do not get excited and think that you are about to get this piece of property at a steal. Also keep in mind that the auctioneer’s job is to get the highest price possible and they will try to encourage frantic bidding in getting you to pay more than your reserve price. Remain calm and never allow yourself to get caught up in the bidding frenzy.
Hopefully these tips will help you to learn how to properly bid at a foreclosed from the auction in order to avoid overpaying for making any other costly mistakes that many first-time bidders wind up regretting later on.
