Avoiding an auction mishap

Date: 12 September 2014
Avoiding an auction mishap
Buying real estate at auction can be incredibly exciting.

The vast stock to choose from, the thrill of trying to outbid - it's very easy to get swept up in the commotion.

However, that's also the problem. All too often, people find themselves bidding too much money for a property they're not even head over heels for because of the auction buzz.

Fortunately, a little forward planning will help you avoid this pitfall.

Give yourself a limit

If you ever go to a casino, chances are you'll set yourself a limit. No matter how fun a game of blackjack may seem, once you hit this threshold, you'll walk away from the tables.

It's often a smart strategy to do the same at auctions.

The fun and excitement that comes with bidding against other buyers for what could be your new home makes it easy to accidentally spend more than you were originally planning.

Avoid this by setting yourself a strict limit and sticking to it. Once the bidding goes past this number, walk away. It's not worth getting yourself into financial hot water for a bit of sport.

Learn the rules

Auctions come with a very specific set of rules. Not understanding them before starting to bid can end up causing you a major headache.

Doing a little research online can help you determine how auctions work, but an even better idea is to visit one or two before you plan to buy.

This way you can get a feel for the atmosphere, watch how others bid and figure out a strategy for yourself in advance.

Auctions can often feel overwhelming for newcomers, so do yourself a favour and get acquainted with the process. Not only will this put you at ease, it could help you avoid making a costly mistake.
Back to articles Filed under: Media / National News Tags: auction, buying, tips for auction, tips for buying
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