Auction is the new way to buy properties.
It is done competitively and unapologetically. It also shortens the long agonizing process of buying a home as it can be done in a day, given the fact that you are financially armed.
If you are interested to go down the lane of auction, there are a couple of things that you need to know and of course, to prepare.
1. Research, research and research!
Get to know your market. It is crucial for you to figure out the basics of buying any property. Dig deep into the area and the various types of properties available. Identify what you are looking for or are keen on buying. Later, do a thorough price comparison among similar properties within the area.
2. The need to feel the experience
You wouldn’t want to suffer any culture shock when it comes to experiencing a day at the auction. Try to attend and experience as many auctions as possible. Listen and learn how other buyers or bidders do it in an auction. You can pick up a tip or two on how to bid effectively from these bidders. In fact, you will face the same bidders when the time comes and it’s good to have tactical advantage.
3. The price is right
Managing your finance is crucial. You wouldn’t want to overbid on a property, which realistically means you can’t purchase a Honda at a price of a Ferrari. In fact, the whole idea of buying an auctioned property is to get it as a ‘value buy’. Make sure you know how high you can go, given some breathing space for other expenses like legal fees, finance fees and stamp duties.
4. Prepare a file of documents
You are planning to get a property. Hence, documentations are crucial in order to make the purchase go as smoothly as possible. Do prepare:
• Your MyKad as you need it for registration purposes
• Bank Draft/Banker’s Cheque amounting 5% or 10% (whichever applicable) of the Reserve Price.
• Some extra cash wouldn’t hurt either. It comes in handy for any Additional Deposit to support if
there is an increase in the Reserve Price.
• Bidder’s Registration Form must be filled thoroughly and specifically.
As auction day arrives…
The day has come to bid for your dream home! Suit up and play the part! You need to project confidence and flair. Get yourself into a swanky outfit, shoes, and style yourself good.
You need to make people feel your presence while attending the auction. Presence is crucial to build a repertoire. Even if you don’t have much cash as some, you still need your persona to scare off the rest of the bidders.
May the best bidder win!
Things can get pretty unpredictable during auction day. Just mentally prepare yourself for the good, the bad and the ugly. The auction often takes place on site of the soon to be auctioned property. Hence, if you have done your homework, you would by now know the location, ambiance and the environment of the property and its neighbourhood.
Make yourself visible. Once again, presence is crucial. Avoid standing hidden within the crowd or blending into the scene. You must ensure that the auctioneer is able to see you clearly during the bidding process.
There are a few things that you must remember during the bidding process. Bid clearly and avoid using unknown non-verbal or body language. You wouldn’t want the auctioneer and other bidders to misconstrue you.
Overheated bidding can take place. Try to take control of your emotions and avoid showing your dissatisfaction in public. Nobody wants to make transaction deals with an emotional wreck.
Remember your capital limits. You have set your price range – don’t ever outbid your budget. There isn’t any cooling off period when it comes to purchasing an auction property.
At the end of the day, you will face either one of two outcomes. You would either have won the bidding war and the property is yours, or you will be coming back empty handed.
If you won the bid, good for you! But now reality kicks in especially in preparing the remaining 90% payment of the property in 28 days.
If you ended up on the losing side, do not be disheartened. Take it as a learning process and a stepping stone to more biddings in the future. It is the experience that matters, and it will help you in the process of getting your dream home!
Images sourced from Business Insider Australia and Giphy.
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