As a first time buyer, competent buyer or as an investor, it can be difficult ensuring you do not get carried away in the sales room.
In our thought-provoking article, we take a look at the 3 best ways to resolve this, which include
applying a a budget and sticking to this
taking someone with you
keeping calm
Keeping calm
The biggest downfall of anyone buying at auction is getting carried away with the atmosphere of the sales room. You can imagine the excitement when your lot comes up next and you are in the middle of a hot bidding war, when do you know its time to step back? There is a very fine line in bidding to take away a BMV property or a property that becomes a lability in your portfolio.Â
Having a set budget is key to your success, and you need the constraint (or take someone with you who does) so that you pull out of the bidding process when you need to. This is very tough as you would have done a lot of research prior to the auction such as site visits, builders quotes, demand research and also parted with some money on construction reports and getting help with the legal pack.
JUST STAY CALM!
applying a a budget and sticking to this
Before you enter the auction room you need to know how much you wish to spend in regards to what the property you feel is worth, and also what means you have to purchase the property.
In my January 2020 blog I went into detail about carrying out searches, conveyancing steps, local demand research and checking the property information pack before you go to auction. This will ensure there is demands in the area plus with you builder you can work out the refurbishment costs. With these figures you can decide what your purchasing amount would be. But ensure you include the legal fees and the auction house costs. You can use this information to look at your funds and see if the two match. If you do not have enough funds you can then make a rational decision to look to other sources for funds or to step away from this purchase.
By doing your home work and knowing that your purchase figure feels comfortable with you and you do have the funds to go through with the purchase then you can go into the auction with confidence.
Taking someone with you
By taking someone with you who is unbiased to the purchase could be a rational anchor to your auction experience – especially at the start of your auctioning journey! If you can tell this person that you have a limit of X and that you wish to look at X as you have done your due diligence on these specific property then they can be your Jiminy Cricket on your shoulder to give you guidance.
Feeling a little stuck in the mud?
It's essential to get yourself in the right frame of mind to start achieving the results you want. Once you are aware of these common drains on your time and results, it becomes so much easier to overcome them.
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