Wednesday, April 25, 2007
Property Auctions
Property Auction & Why You Should Run A Mile From Them
By Colm Dillon Platinum Quality Author
That's A Funny Thing To Say About Property Auctions; They're All The "RAGE, Aren't They?"
From The Desk Of Colm Dillon
Hello Colm here ...
So why would I make such a comment like that; I mean, they're happening everywhere, aren't they?. They’re even on TV. property auction,
So let’s go back a bit. Can you remember back to when they were a rare happening. Some big house owned by the local rich family or the farm or antiques; that kind of thing. property auction,
Now it seems to be just about every three-bedroom homeowner is being convinced to sell that way. property auction,
So let’s look at what or who has driven this upsurge, and why they would have done it? property auction,
I like to go back to basics and ask the Question; Who Benefits? Because whoever benefits, you can bet they’re the ones driving the "A" truck, and are trying to get us all up on the tray property auction,
It’s the media barons folks … the major newspaper and TV owners have convinced the Real Estate Agents to push you into auctions, because it generates BIG ADVERTISING REVENUE. property auction,
Newspapers don’t make money out of the news. The NEWS is only the reason they can sell advertising and it is from advertising that they make a profit. property auction,
The Real Estate bosses have fallen for their line hook line and sinker. Agents have become advertising salespeople for the newspapers. property auction,
So why does the big "A" appeal to the big real estate bosses? property auction,
1. It brings a sale process to an end with a definite date … the "A" date. property auction,
2. The agent doesn’t have to commit to an achievable sale price. property auction,
3. The normal sale process is hard work requiring a higher skill level. property auction,
4. The client pays all the advertising up front.
5. Advertising makes the Agency look big and successful, but with Client’s Money. property auction,
6. All the pressure is put on the client to sell. property auction,
7. Failed auctions don’t get advertised in the mediaproperty auction,
8. They earn commission from the newspapers for selling advertising for them. property auction,
It brings a sale process to an end with a definite date … the "A" date. property auction,
It sells or it doesn’t sell! Accordingly it’s relatively easy for the agency boss to estimate his income from a regular flow of auctions. property auction,
Private Treaty sales require individual inspections and negotiations and an end date is not easy to determine. property auction,
The agent doesn’t have to commit to an achievable sale price. property auction,
At the auction sales presentation, you the owner, would like to know 'What Price" you will get for your property. property auction,
The answer is always,’THE MARKET.’ And of course, so the story goes, THE MARKET will usually recover the advertising expenses you must pay up front; especially for a beautiful house like yours. property auction,
The normal sale process is hard work requiring a higher skill level. property auction, The agent, therefore, does not have to give you a possible range, within which your achievable price will fall. By definition this allows the agency to employ people with high sell ‘the auction’ ability but reduced real estate experience. property auction,
The client pays all the advertising up front. property auction,
OH, did I mention that you now have to part with a Substantial Cheque of many thousands of dollars in order to promote your property. You will be presented with a well-prepared advertising campaign. Your only choice will be the ‘pink one’ or the ‘yellow one.’ property auction,
That is the $7,000 one or the vastly superior $11,000 one. If your house is a high price ticket, you can double these costs. property auction,
Advertising makes the Agency look big and successful, but with Client’s Money. property auction,
OK, the campaign is off and running and you first advert appears in the Color Pages. Yes it is small, isn’t it? As a matter of fact the most dominant FEATURE on the page is the AGENCY’S NAME. Then, of course, we have the sales person’s photo, perpetuating the ‘cult of personality.’ property auction,
Oh yes, then there is the picture of your house and a few lines of description in typeface you can just read. ‘Umm,’ you think, ‘maybe I should have gone for the bigger size ad. property auction,
Let’s move on to the day just before the auction, and when all your money has been spent. The agent and the auctioneer visit you and tell you that there has been a good response to the advertising. Of course, you don’t have a clue what quantifies as a ‘good response.’
‘We need to establish a Reserve Price” they continue. As someone once said, ‘please explain?’
Oh, it’s the minimum price you would accept! ‘But.’ you say, ‘I didn’t go to auction to get the MINIMUM PRICE, I want the MAXIMUM PRICE; what’s this minimum price business?’
‘Well,’ says the auction agent, ‘now that we have completed this big campaign for you,’ they continue, ‘you want a result don’t you, so let’s not send the people who turn up get away.’ ‘No,’ you should reply, ‘I don’t want any result, I want the best price plus my advertising cost back.’ Question! How well do you sleep that night?
All the pressure is put on the client to sell.
Let’s skip now to the BIG DAY, and ask the question, “who is under the greatest pressure, you or the agent? I THINK IT ‘S YOU!
How many will turn up? Will they be ‘Tyre Kickers & Sticky Beaks’? I’ve just spent thousands of dollars to get to this point. Boy I hope we sell, and MOST IMPORTANTLY, sell at a great price. A price that will beat the price I could get just selling it normally + my advertising costs.
THE AUCTION
Let’s just say that the ideal prices for your home is $550,000.00, OK!
In the crowd there are a number of genuine buyers, whose profile range from:
* Investors (who want to steal your property for a low price, say $100,000 under)
* Normal home buyers (who will pay a fair price, say $520,000.00)
* And finally there is one ‘heart’ buyer who will pay up to $580,000.00).
Once the auction starts it is easy to see how the investors get knocked out of the bidding, after all they are only there to grab a bargain when an auction fails and the seller is desperate. But they do get the ball rolling.
Next the bidding stops at $520,000.00 where the normal buyer has reached their limit. They get knocked out as soon as the Heart buyer goes another $5,000.00.
So your house is now at a bid of $525,000.00 with no other bidders to get it up to the possible top bid of $580,000 which is the capacity of the person who last bid.
The auctioneer will now halt proceedings and have a private “pressure” chat with you. Now remember you do not know the highest bidder can go higher.
No matter what words come out of his mouth the essence will be,‘the best bid I can get is $525,000.00 and no matter what I say I cannot get another bid. So do you want to sell at $525,000.00 or not?’
I did mention pressure earlier on. Are you beginning to feel it yet, after all, you have spent thousands of dollars, and now you are $25,000.00 under the price you wanted. If you say NO the audience walks, and you are left with a debt, and the hope of selling privately after the auction.
Failed auctions don’t get advertised in the media.
Now comes the next problem. As an auction is such a PUBLIC event, all the agents and all the neighbors know at what price your auction failed. So I’m sorry but that failed price is now “THE PRICE” AND IT IS HARD TO GET PEOPLE TO PAY MUCH MORE AFTER AUCTION.
Ever notice how auctions that fail never seem to be newsworthy. Well, you see, it’s bad for the organization that has a vested interest in promoting auctions. If you happen to own newspapers and a TV network you could always create a program and why not call it Auction.
Just like any soapy, before long all the people start to believe in auctions. They can even see themselves as being the person on TV. But folks we have to remember that it is ENTERTAINMENT.
They earn commission from the newspapers for selling advertising for them.
Remember I told you that the agents who promote auctions are really working for the newspapers, so naturally they’re entitled to be paid? As a matter of fact their employers are so happy that they put on a big annual celebration black tie dinner.
And they give out prizes and plaques. So when you go into a big agency’s office have a look at the plaques on the wall. “For the Agency that booked the biggest Dollar Value Advertising for the Month – Year; For the Agent within the Agency who booked the biggest Dollar Value Advertising for the Month – Year etc.
You bet, every little dedicated worker gets a prize. They unfortunately don’t have a prize for the Agency that rebates the newspaper kick back commission to the vendor!
And so we end the sorry saga of:
Auctions & Why You Should Run a Mile From Them?
Are You Saying Auctions Should Never Be Used for Selling Property?
No. I am not saying that at all. If you have a unique property that has features that may only appeal to a limited number of people in your immediate market, then you should auction.
The vast majority of Aussie Home sellers can get a better and cost effective result from selling by normal Private Treaty method. Remember it is the Net Result after all costs that ends up in your pocket.
And I did mention the ‘pressure’ of the auction process and the ‘public profile’ of the failed price does not work in your favor.
PS: The correct way to sell your property is by Private Treaty with a knowledgeable real estate agent with whom you are comfortable and in whom you have confidence.
The Real Estate Development Coach
Copyright Colm Dillon, October 2003
All Rights Reserved.
Colm Dillonauthor of "Residential Development Made Easy" the only 'How To' Become a Developer eBook, selling in 38 Countries, has developed $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html
Article Source: http://EzineArticles.com/?expert=Colm_Dillon
By Colm Dillon Platinum Quality Author
That's A Funny Thing To Say About Property Auctions; They're All The "RAGE, Aren't They?"
From The Desk Of Colm Dillon
Hello Colm here ...
So why would I make such a comment like that; I mean, they're happening everywhere, aren't they?. They’re even on TV. property auction,
So let’s go back a bit. Can you remember back to when they were a rare happening. Some big house owned by the local rich family or the farm or antiques; that kind of thing. property auction,
Now it seems to be just about every three-bedroom homeowner is being convinced to sell that way. property auction,
So let’s look at what or who has driven this upsurge, and why they would have done it? property auction,
I like to go back to basics and ask the Question; Who Benefits? Because whoever benefits, you can bet they’re the ones driving the "A" truck, and are trying to get us all up on the tray property auction,
It’s the media barons folks … the major newspaper and TV owners have convinced the Real Estate Agents to push you into auctions, because it generates BIG ADVERTISING REVENUE. property auction,
Newspapers don’t make money out of the news. The NEWS is only the reason they can sell advertising and it is from advertising that they make a profit. property auction,
The Real Estate bosses have fallen for their line hook line and sinker. Agents have become advertising salespeople for the newspapers. property auction,
So why does the big "A" appeal to the big real estate bosses? property auction,
1. It brings a sale process to an end with a definite date … the "A" date. property auction,
2. The agent doesn’t have to commit to an achievable sale price. property auction,
3. The normal sale process is hard work requiring a higher skill level. property auction,
4. The client pays all the advertising up front.
5. Advertising makes the Agency look big and successful, but with Client’s Money. property auction,
6. All the pressure is put on the client to sell. property auction,
7. Failed auctions don’t get advertised in the mediaproperty auction,
8. They earn commission from the newspapers for selling advertising for them. property auction,
It brings a sale process to an end with a definite date … the "A" date. property auction,
It sells or it doesn’t sell! Accordingly it’s relatively easy for the agency boss to estimate his income from a regular flow of auctions. property auction,
Private Treaty sales require individual inspections and negotiations and an end date is not easy to determine. property auction,
The agent doesn’t have to commit to an achievable sale price. property auction,
At the auction sales presentation, you the owner, would like to know 'What Price" you will get for your property. property auction,
The answer is always,’THE MARKET.’ And of course, so the story goes, THE MARKET will usually recover the advertising expenses you must pay up front; especially for a beautiful house like yours. property auction,
The normal sale process is hard work requiring a higher skill level. property auction, The agent, therefore, does not have to give you a possible range, within which your achievable price will fall. By definition this allows the agency to employ people with high sell ‘the auction’ ability but reduced real estate experience. property auction,
The client pays all the advertising up front. property auction,
OH, did I mention that you now have to part with a Substantial Cheque of many thousands of dollars in order to promote your property. You will be presented with a well-prepared advertising campaign. Your only choice will be the ‘pink one’ or the ‘yellow one.’ property auction,
That is the $7,000 one or the vastly superior $11,000 one. If your house is a high price ticket, you can double these costs. property auction,
Advertising makes the Agency look big and successful, but with Client’s Money. property auction,
OK, the campaign is off and running and you first advert appears in the Color Pages. Yes it is small, isn’t it? As a matter of fact the most dominant FEATURE on the page is the AGENCY’S NAME. Then, of course, we have the sales person’s photo, perpetuating the ‘cult of personality.’ property auction,
Oh yes, then there is the picture of your house and a few lines of description in typeface you can just read. ‘Umm,’ you think, ‘maybe I should have gone for the bigger size ad. property auction,
Let’s move on to the day just before the auction, and when all your money has been spent. The agent and the auctioneer visit you and tell you that there has been a good response to the advertising. Of course, you don’t have a clue what quantifies as a ‘good response.’
‘We need to establish a Reserve Price” they continue. As someone once said, ‘please explain?’
Oh, it’s the minimum price you would accept! ‘But.’ you say, ‘I didn’t go to auction to get the MINIMUM PRICE, I want the MAXIMUM PRICE; what’s this minimum price business?’
‘Well,’ says the auction agent, ‘now that we have completed this big campaign for you,’ they continue, ‘you want a result don’t you, so let’s not send the people who turn up get away.’ ‘No,’ you should reply, ‘I don’t want any result, I want the best price plus my advertising cost back.’ Question! How well do you sleep that night?
All the pressure is put on the client to sell.
Let’s skip now to the BIG DAY, and ask the question, “who is under the greatest pressure, you or the agent? I THINK IT ‘S YOU!
How many will turn up? Will they be ‘Tyre Kickers & Sticky Beaks’? I’ve just spent thousands of dollars to get to this point. Boy I hope we sell, and MOST IMPORTANTLY, sell at a great price. A price that will beat the price I could get just selling it normally + my advertising costs.
THE AUCTION
Let’s just say that the ideal prices for your home is $550,000.00, OK!
In the crowd there are a number of genuine buyers, whose profile range from:
* Investors (who want to steal your property for a low price, say $100,000 under)
* Normal home buyers (who will pay a fair price, say $520,000.00)
* And finally there is one ‘heart’ buyer who will pay up to $580,000.00).
Once the auction starts it is easy to see how the investors get knocked out of the bidding, after all they are only there to grab a bargain when an auction fails and the seller is desperate. But they do get the ball rolling.
Next the bidding stops at $520,000.00 where the normal buyer has reached their limit. They get knocked out as soon as the Heart buyer goes another $5,000.00.
So your house is now at a bid of $525,000.00 with no other bidders to get it up to the possible top bid of $580,000 which is the capacity of the person who last bid.
The auctioneer will now halt proceedings and have a private “pressure” chat with you. Now remember you do not know the highest bidder can go higher.
No matter what words come out of his mouth the essence will be,‘the best bid I can get is $525,000.00 and no matter what I say I cannot get another bid. So do you want to sell at $525,000.00 or not?’
I did mention pressure earlier on. Are you beginning to feel it yet, after all, you have spent thousands of dollars, and now you are $25,000.00 under the price you wanted. If you say NO the audience walks, and you are left with a debt, and the hope of selling privately after the auction.
Failed auctions don’t get advertised in the media.
Now comes the next problem. As an auction is such a PUBLIC event, all the agents and all the neighbors know at what price your auction failed. So I’m sorry but that failed price is now “THE PRICE” AND IT IS HARD TO GET PEOPLE TO PAY MUCH MORE AFTER AUCTION.
Ever notice how auctions that fail never seem to be newsworthy. Well, you see, it’s bad for the organization that has a vested interest in promoting auctions. If you happen to own newspapers and a TV network you could always create a program and why not call it Auction.
Just like any soapy, before long all the people start to believe in auctions. They can even see themselves as being the person on TV. But folks we have to remember that it is ENTERTAINMENT.
They earn commission from the newspapers for selling advertising for them.
Remember I told you that the agents who promote auctions are really working for the newspapers, so naturally they’re entitled to be paid? As a matter of fact their employers are so happy that they put on a big annual celebration black tie dinner.
And they give out prizes and plaques. So when you go into a big agency’s office have a look at the plaques on the wall. “For the Agency that booked the biggest Dollar Value Advertising for the Month – Year; For the Agent within the Agency who booked the biggest Dollar Value Advertising for the Month – Year etc.
You bet, every little dedicated worker gets a prize. They unfortunately don’t have a prize for the Agency that rebates the newspaper kick back commission to the vendor!
And so we end the sorry saga of:
Auctions & Why You Should Run a Mile From Them?
Are You Saying Auctions Should Never Be Used for Selling Property?
No. I am not saying that at all. If you have a unique property that has features that may only appeal to a limited number of people in your immediate market, then you should auction.
The vast majority of Aussie Home sellers can get a better and cost effective result from selling by normal Private Treaty method. Remember it is the Net Result after all costs that ends up in your pocket.
And I did mention the ‘pressure’ of the auction process and the ‘public profile’ of the failed price does not work in your favor.
PS: The correct way to sell your property is by Private Treaty with a knowledgeable real estate agent with whom you are comfortable and in whom you have confidence.
The Real Estate Development Coach
Copyright Colm Dillon, October 2003
All Rights Reserved.
Colm Dillonauthor of "Residential Development Made Easy" the only 'How To' Become a Developer eBook, selling in 38 Countries, has developed $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html
Article Source: http://EzineArticles.com/?expert=Colm_Dillon
Friday, April 20, 2007
More Property Auction Tips
Property Auction Tips
More basic Tips on Buying and Selling Property at Auction
Regardless of whether you have experience in buying and selling at auction or heading in this direction for the first time, there is always something to learn. Most of us live by the phrase ‘we learn from our mistakes,’ but why make mistakes in the first place if we don’t have to. All it takes is some common sense and some time for research.
Below is a list of more basic tips before you buy or sell your property at auction.
1. First and foremost is to organise your finance. Take the time to find the best home loan for you. There are many finance venues to choose from etc: Mortgage Brokers, Banks, Credit Unions, just to name a few. Take into consideration the Interest Rates, Term of the loan, fees and charges, flexibility etc. Never place a deposit on a property prior to arranging finance. If your loan is not approved you will lose your deposit, not to mention the disappointment of also losing the property.
2. Make sure you keep up to date with your local auction market. These details can be found in your local newspapers. Look for things such as properties sold, Properties passed in and current trends (if any) using the auction method of sale.
3. It is also an excellent idea to attend some on site property auctions as a spectator. You can learn a lot just watching how an auction works, you will also feel much more relaxed and comfortable on your auction day knowing what to expect.
4. Prior to deciding to bid at the auction make sure you have attended open houses and inspections on the property. When buying at auction it is a case of ‘what you see is what you get,’ therefore do not get caught having to spend thousands of dollars on what you ‘did not see.’ Obtain a building inspection report so you know the foundations are strong, no termites, sound structure etc. It is also a good idea to take a note pad and tape measure. Whilst at open house inspections these two items can be very useful. Before attending an open house or inspection you should write a list of things you specifically wish to check whilst you are there. If you do not have a list to go off it is likely you will forget a few things.
Nicky Price writes on buying and selling property at auction and other real estate related issues. You can learn more by visiting by blog Real Estate Investment Advice
http://realestateinvestmentadvice.blogspot.com
www.auctionaware.blogspot.com
More basic Tips on Buying and Selling Property at Auction
Regardless of whether you have experience in buying and selling at auction or heading in this direction for the first time, there is always something to learn. Most of us live by the phrase ‘we learn from our mistakes,’ but why make mistakes in the first place if we don’t have to. All it takes is some common sense and some time for research.
Below is a list of more basic tips before you buy or sell your property at auction.
1. First and foremost is to organise your finance. Take the time to find the best home loan for you. There are many finance venues to choose from etc: Mortgage Brokers, Banks, Credit Unions, just to name a few. Take into consideration the Interest Rates, Term of the loan, fees and charges, flexibility etc. Never place a deposit on a property prior to arranging finance. If your loan is not approved you will lose your deposit, not to mention the disappointment of also losing the property.
2. Make sure you keep up to date with your local auction market. These details can be found in your local newspapers. Look for things such as properties sold, Properties passed in and current trends (if any) using the auction method of sale.
3. It is also an excellent idea to attend some on site property auctions as a spectator. You can learn a lot just watching how an auction works, you will also feel much more relaxed and comfortable on your auction day knowing what to expect.
4. Prior to deciding to bid at the auction make sure you have attended open houses and inspections on the property. When buying at auction it is a case of ‘what you see is what you get,’ therefore do not get caught having to spend thousands of dollars on what you ‘did not see.’ Obtain a building inspection report so you know the foundations are strong, no termites, sound structure etc. It is also a good idea to take a note pad and tape measure. Whilst at open house inspections these two items can be very useful. Before attending an open house or inspection you should write a list of things you specifically wish to check whilst you are there. If you do not have a list to go off it is likely you will forget a few things.
Nicky Price writes on buying and selling property at auction and other real estate related issues. You can learn more by visiting by blog Real Estate Investment Advice
http://realestateinvestmentadvice.blogspot.com
www.auctionaware.blogspot.com
Sunday, March 18, 2007
BUYERS AND SELLERS BEWARE
AUCTIONS
By Nicky Price
BASIC TIPS FOR BUYING OR SELLING PROPERTY AT AUCTION
Auctions are one of many methods used to buy and sell property. It is also the worst method, especially if you are the seller. Ask yourself the question, “who really wins at an auction, the buyer, the seller or the agent? Once you have done your research you will see it is almost always the real estate agent.
SELLING AT AUCTION
Should you sell your property using the auction method?
No, because you very rarely receive the price you were hoping for or the price the agent has promised you. If you decide to sell at auction you will be asked ‘what is your reserve price?’ Your reserve price is the lowest amount you would be prepared to take for the sale of your property. Now why would you want your lowest price out there when you are trying to get the highest price possible?
There is also the possibility that your property may be ‘passed in’. This means your property did not meet the reserve you set, therefore did not sell. If this is the case, how much has it cost you to not sell your house? The cost of advertising your property and auctioneers fees can run into thousands. Do not pay your agent any money until your house is sold and you walk away feeling satisfied your agent has done the best for you.
BUYING AT AUCTION
All sellers are over-quoted by the agent and all buyers are under-quoted by the agent. Because of this, the buyer could also be “out of pocket’ with nothing to show for it. The property has been sold for more than the agent told you it could possibly get and you have now wasted your money spent on advice and building inspections. If possible try to converse with the owners prior to auction and compare quotes given to you both by the agent
A common practice at property auctions is the Dummy Bidder. The dummy bidder is placed amongst the crowd and bids like a genuine buyer. This is to drive up the price of the property. Could you imagine bidding against a dummy bidder only to find out you won the purchase but it cost you thirty thousand dollars more than you could actually have paid.
ESSENTIAL TIPS
There are many tips advising you against buying and selling at Auction. For instance, there is the possibility the auction could only attract spectators and not genuine buyers, the closer the auction gets the agent will start conditioning you to accept a lower price than you wanted and you will also be told how many houses they have successfully sold by auction, when in reality these houses would have sold anyway even if not at auction
Always investigate other methods of buying and selling your property before deciding on the auction method. Whether you are a buyer or a seller it is your financial future and security at stake here. By not doing your research you could lose thousand of dollars and be caused a lot of stress and heartache.
By Nicky Price
BASIC TIPS FOR BUYING OR SELLING PROPERTY AT AUCTION
Auctions are one of many methods used to buy and sell property. It is also the worst method, especially if you are the seller. Ask yourself the question, “who really wins at an auction, the buyer, the seller or the agent? Once you have done your research you will see it is almost always the real estate agent.
SELLING AT AUCTION
Should you sell your property using the auction method?
No, because you very rarely receive the price you were hoping for or the price the agent has promised you. If you decide to sell at auction you will be asked ‘what is your reserve price?’ Your reserve price is the lowest amount you would be prepared to take for the sale of your property. Now why would you want your lowest price out there when you are trying to get the highest price possible?
There is also the possibility that your property may be ‘passed in’. This means your property did not meet the reserve you set, therefore did not sell. If this is the case, how much has it cost you to not sell your house? The cost of advertising your property and auctioneers fees can run into thousands. Do not pay your agent any money until your house is sold and you walk away feeling satisfied your agent has done the best for you.
BUYING AT AUCTION
All sellers are over-quoted by the agent and all buyers are under-quoted by the agent. Because of this, the buyer could also be “out of pocket’ with nothing to show for it. The property has been sold for more than the agent told you it could possibly get and you have now wasted your money spent on advice and building inspections. If possible try to converse with the owners prior to auction and compare quotes given to you both by the agent
A common practice at property auctions is the Dummy Bidder. The dummy bidder is placed amongst the crowd and bids like a genuine buyer. This is to drive up the price of the property. Could you imagine bidding against a dummy bidder only to find out you won the purchase but it cost you thirty thousand dollars more than you could actually have paid.
ESSENTIAL TIPS
There are many tips advising you against buying and selling at Auction. For instance, there is the possibility the auction could only attract spectators and not genuine buyers, the closer the auction gets the agent will start conditioning you to accept a lower price than you wanted and you will also be told how many houses they have successfully sold by auction, when in reality these houses would have sold anyway even if not at auction
Always investigate other methods of buying and selling your property before deciding on the auction method. Whether you are a buyer or a seller it is your financial future and security at stake here. By not doing your research you could lose thousand of dollars and be caused a lot of stress and heartache.
Tuesday, March 13, 2007
auction aware
How Auctions get lower Prices
Seven Rules for buying at Auctions
“Ripper Auctions” but who’s being ripped ?
Dummy Bidding
HOW AUCTIONS GET LOWER PRICES
Homesellers tempted to auction their homes should remember four words: AUCTIONS GET LOWER PRICES.
Never mind what agents tell you, never mind what you read in the papers, auctions are a financial minefield for consumers.
Despite the booms in many areas, thousands of homesellers are turning their backs on auction and benefiting. But there are still thousands of sellers who don't realise, until it's too late, what happens to them at auction.
They get a LOWER price, that's what happens.
If someone is trying to talk you into selling by auction, then before you sign anything, please read this.
NINE REASONS AUCTIONS
GET LOWER PRICES
1. THE STARTING PRICE
It seems as if the price goes up at auctions. But that's only because it starts LOW. It's like starting the day with a massive hangover and saying that you are going to feel better as the day progresses. That's not a good reason to get drunk every night. Avoid drinking and you avoid the hangover. You start the day in good shape.
And that's how your sale should start - from a good position, a position of strength, not of weakness.
One of the BASIC principles of price negotiation is to ALWAYS START HIGH.
You will get a much higher price if you start higher and come down, than if you start lower and try to climb up. When you start low, you can get stuck low. It's like climbing up a mountain or down the mountain. When you are climbing up you run out of energy a lot faster than when you are climbing down.
If you want a high price, START high. Auctions start low.
This is how auctions get lower prices.
2. RESERVE PRICE
The reserve price is the price at which the home can be sold. It's the lowest price a seller is prepared to accept. And that becomes the central focus of the auction.
If you are trying to get the highest price, do NOT make your lowest price the main focus of the sale.
There are two parties in a sale price negotiation - a seller and a buyer. Each has their "final price" or their "limit". The sellers' final price is the reserve - that's the lowest the home will sell for. The buyers' final price may never be known.
There is no procedure at an auction for determining the highest price a buyer will pay. Only the highest price of the losing buyers may be known because they stop bidding once they reach their limit. But the buyer who is the highest bidder often buys at less than his or her limit.
Most buyers at auction buy for less than their limit which means most sellers at auction under-sell their homes.
You can't possibly get the highest price for your home if the central focus is on the Sellers' Lowest Price. You can only get the highest price if the focus is on the Buyers' Highest Price.
As a seller, you are at a huge disadvantage because your lowest price, the 'reserve', is always disclosed BEFORE the home is sold. That’s when you hear the agent yell, “It’s ON the market”. Everyone knows your lowest price.
Not so with the buyers. IF their final price is ever disclosed, it will be AFTER the sale is over. By then it is too late for the sellers.
This is how auctions get lower prices.
3. REPELS BUYERS
Research shows that more than 90 percent of buyers do NOT like auctions. It makes no sense to use a system of selling disliked by most of the buyers.
You can only get the highest price if all the buyers who may be interested in a home are given the chance to buy the home. As auctions repel so many buyers, the highest paying buyers often avoid auctions.
And this is how auctions get lower prices.
4. INCONVENIENT
One of the BASIC rules of marketing is: make it EASY for people to buy. Auctions do not make it easy. They make it hard.
Many buyers see that a home is for auction, and if the date doesn't suit them, they don't even bother to enquire. The buyers that are lost in this manner are often buyers who would have paid thousands of dollars more than the auction's final selling price.
And this is how auctions get lower prices.
5. BARGAIN HUNTERS
Investors, property dealers and bargain hunters all know that auctions are one of the best places to find cheap deals in real estate. It is well-known that deceased estates and mortgagee sales are often sold for a 'song' at auction. Auction agents try to justify this by saying, "Look at the banks and the Government departments. They use auctions."
But that's because they want to make sure the home is sold. The sale is more important than the price. The banks and the Government departments are not the "owners" in the way that consumers are owners. Many banks and Government departments do not realise they are under-selling homes at auction. Those who do, are now beginning to avoid auctions.
Property investors, developers and dealers often buy at auction. But they almost NEVER sell at auction. That's because auctions get lower prices.
6. COMPARATIVE
If two or more people want to buy the same home, the worst thing you can do, from a negotiation point, is to allow each person to SEE what the other is offering! Instead of offering their highest price, each buyer will only offer a SMALL amount above what the other buyer offered.
Auctions are touted as being competitive - but the competition is in PUBLIC not private - which makes it COMPARATIVE more than competitive. Everyone compares what everyone else is offering.
It's like playing cards and knowing what the others are holding. By making the negotiation so public, the buyers have a tremendous advantage over the seller. Instead of having to offer their highest price to win the auction, buyers only have to outbid the buyer below them.
And this is how auctions get lower prices.
7. DECEPTION
To persuade sellers to auction their homes, agents will talk about high prices. And then to get buyers to come to the auction, the same agents will talk about low prices. Most times both the seller AND the buyer are deceived. The sellers end up selling for less than they were told they could get, and the buyers often end up paying more than they were told they could pay.
The most infamous deceit is Dummy Bidding where agents use bogus bids to keep the auction moving. Some agents deny that Dummy Bidding exists. But consider this: How do you have an auction with only ONE bidder?
Most people think Dummy Bidding increases the price. But Dummy Bidding deceives sellers as much as buyers. It is used to get the price up to the point where it can be sold - the reserve price.
Usually, once the home reaches its reserve, the agent stops using bogus bids. The home is then sold for its lowest price.
And this is how auctions get lower prices.
8. SELLS TO THE WRONG MARKET
To attract buyers, agents will market the home by advertising it to "start from" a low price. This is supposed to attract buyers. And indeed it does. But it attracts buyers who want to buy at the LOW price NOT at the price the seller wants.
Many of these buyers can't afford to pay much more than the price advertised. And so, on the day of the auction, there will be a crowd of buyers all wanting to buy at a low price.
The agent will then say to the sellers, "This is what the market is telling us."
But the agent has been looking in the WRONG market - a market BELOW THE VALUE of the home.
This is how auctions get lower prices.
9. FAILED AUCTIONS
When a home does not sell at auction - and thousands don't - it is labelled a "failure". Buyers think something is wrong with it; and many will offer LOWER prices. Like a wounded animal with vultures circling, failed auctions are easy prey for bargain hunters.
This is how auctions get lower prices.
These are just some of the reasons why we believe AUCTIONS GET LOWER PRICES. We hope it's enough to make you think carefully when someone wants you to sign-up for an auction.
More information is available in the book Real Estate Mistakes.
Thank you.
Neil Jenman
If you are a real estate consumer and you have any comments or suggestions, please tell us Your Story.
Seven Rules for buying at Auctions
“Ripper Auctions” but who’s being ripped ?
Dummy Bidding
HOW AUCTIONS GET LOWER PRICES
Homesellers tempted to auction their homes should remember four words: AUCTIONS GET LOWER PRICES.
Never mind what agents tell you, never mind what you read in the papers, auctions are a financial minefield for consumers.
Despite the booms in many areas, thousands of homesellers are turning their backs on auction and benefiting. But there are still thousands of sellers who don't realise, until it's too late, what happens to them at auction.
They get a LOWER price, that's what happens.
If someone is trying to talk you into selling by auction, then before you sign anything, please read this.
NINE REASONS AUCTIONS
GET LOWER PRICES
1. THE STARTING PRICE
It seems as if the price goes up at auctions. But that's only because it starts LOW. It's like starting the day with a massive hangover and saying that you are going to feel better as the day progresses. That's not a good reason to get drunk every night. Avoid drinking and you avoid the hangover. You start the day in good shape.
And that's how your sale should start - from a good position, a position of strength, not of weakness.
One of the BASIC principles of price negotiation is to ALWAYS START HIGH.
You will get a much higher price if you start higher and come down, than if you start lower and try to climb up. When you start low, you can get stuck low. It's like climbing up a mountain or down the mountain. When you are climbing up you run out of energy a lot faster than when you are climbing down.
If you want a high price, START high. Auctions start low.
This is how auctions get lower prices.
2. RESERVE PRICE
The reserve price is the price at which the home can be sold. It's the lowest price a seller is prepared to accept. And that becomes the central focus of the auction.
If you are trying to get the highest price, do NOT make your lowest price the main focus of the sale.
There are two parties in a sale price negotiation - a seller and a buyer. Each has their "final price" or their "limit". The sellers' final price is the reserve - that's the lowest the home will sell for. The buyers' final price may never be known.
There is no procedure at an auction for determining the highest price a buyer will pay. Only the highest price of the losing buyers may be known because they stop bidding once they reach their limit. But the buyer who is the highest bidder often buys at less than his or her limit.
Most buyers at auction buy for less than their limit which means most sellers at auction under-sell their homes.
You can't possibly get the highest price for your home if the central focus is on the Sellers' Lowest Price. You can only get the highest price if the focus is on the Buyers' Highest Price.
As a seller, you are at a huge disadvantage because your lowest price, the 'reserve', is always disclosed BEFORE the home is sold. That’s when you hear the agent yell, “It’s ON the market”. Everyone knows your lowest price.
Not so with the buyers. IF their final price is ever disclosed, it will be AFTER the sale is over. By then it is too late for the sellers.
This is how auctions get lower prices.
3. REPELS BUYERS
Research shows that more than 90 percent of buyers do NOT like auctions. It makes no sense to use a system of selling disliked by most of the buyers.
You can only get the highest price if all the buyers who may be interested in a home are given the chance to buy the home. As auctions repel so many buyers, the highest paying buyers often avoid auctions.
And this is how auctions get lower prices.
4. INCONVENIENT
One of the BASIC rules of marketing is: make it EASY for people to buy. Auctions do not make it easy. They make it hard.
Many buyers see that a home is for auction, and if the date doesn't suit them, they don't even bother to enquire. The buyers that are lost in this manner are often buyers who would have paid thousands of dollars more than the auction's final selling price.
And this is how auctions get lower prices.
5. BARGAIN HUNTERS
Investors, property dealers and bargain hunters all know that auctions are one of the best places to find cheap deals in real estate. It is well-known that deceased estates and mortgagee sales are often sold for a 'song' at auction. Auction agents try to justify this by saying, "Look at the banks and the Government departments. They use auctions."
But that's because they want to make sure the home is sold. The sale is more important than the price. The banks and the Government departments are not the "owners" in the way that consumers are owners. Many banks and Government departments do not realise they are under-selling homes at auction. Those who do, are now beginning to avoid auctions.
Property investors, developers and dealers often buy at auction. But they almost NEVER sell at auction. That's because auctions get lower prices.
6. COMPARATIVE
If two or more people want to buy the same home, the worst thing you can do, from a negotiation point, is to allow each person to SEE what the other is offering! Instead of offering their highest price, each buyer will only offer a SMALL amount above what the other buyer offered.
Auctions are touted as being competitive - but the competition is in PUBLIC not private - which makes it COMPARATIVE more than competitive. Everyone compares what everyone else is offering.
It's like playing cards and knowing what the others are holding. By making the negotiation so public, the buyers have a tremendous advantage over the seller. Instead of having to offer their highest price to win the auction, buyers only have to outbid the buyer below them.
And this is how auctions get lower prices.
7. DECEPTION
To persuade sellers to auction their homes, agents will talk about high prices. And then to get buyers to come to the auction, the same agents will talk about low prices. Most times both the seller AND the buyer are deceived. The sellers end up selling for less than they were told they could get, and the buyers often end up paying more than they were told they could pay.
The most infamous deceit is Dummy Bidding where agents use bogus bids to keep the auction moving. Some agents deny that Dummy Bidding exists. But consider this: How do you have an auction with only ONE bidder?
Most people think Dummy Bidding increases the price. But Dummy Bidding deceives sellers as much as buyers. It is used to get the price up to the point where it can be sold - the reserve price.
Usually, once the home reaches its reserve, the agent stops using bogus bids. The home is then sold for its lowest price.
And this is how auctions get lower prices.
8. SELLS TO THE WRONG MARKET
To attract buyers, agents will market the home by advertising it to "start from" a low price. This is supposed to attract buyers. And indeed it does. But it attracts buyers who want to buy at the LOW price NOT at the price the seller wants.
Many of these buyers can't afford to pay much more than the price advertised. And so, on the day of the auction, there will be a crowd of buyers all wanting to buy at a low price.
The agent will then say to the sellers, "This is what the market is telling us."
But the agent has been looking in the WRONG market - a market BELOW THE VALUE of the home.
This is how auctions get lower prices.
9. FAILED AUCTIONS
When a home does not sell at auction - and thousands don't - it is labelled a "failure". Buyers think something is wrong with it; and many will offer LOWER prices. Like a wounded animal with vultures circling, failed auctions are easy prey for bargain hunters.
This is how auctions get lower prices.
These are just some of the reasons why we believe AUCTIONS GET LOWER PRICES. We hope it's enough to make you think carefully when someone wants you to sign-up for an auction.
More information is available in the book Real Estate Mistakes.
Thank you.
Neil Jenman
If you are a real estate consumer and you have any comments or suggestions, please tell us Your Story.
Saturday, March 10, 2007
minimise your risk buying property at auction
How to Minimize Risk When Buying at Real Estate Auction
By James Klobasa
You can too if you do your research and avoid common pitfalls.
With every type of investment, there is risk. In most cases the higher amount of risk that you are willing to take results in larger returns on your investment. The same is true in real estate investing. This means that the properties that stand to make you the most money also present the most challenges.
While there are three stages of the foreclosure process where it is possible to purchase the distressed property, only one offers the greatest return. This is the Sheriffs sale or auction phase. If you are able to purchase a property at this time you could realistically take ownership of the property for as much as 45 percent under the listing price of the home. But with this reward comes great risk
The greatest way to minimize risk when investing in real estate is to do your homework. Heres a checklist to help you out:Find out how much of a cash deposit you will need at auction. In many cases this is 10 percent with the remaining balance due within months, weeks, days, or hours. Make sure that you know the laws in your state and county.
Try your best to inspect the property before the auction. If you can not inspect the property, strive to build up a relationship with the homeowner so that you can learn about any costly repairs that need to be done and calculate them into your bid price.
Verify that there are no other liens on the property through a title search. If you purchase the property at auction, these will become your responsibility.
Know your competition. Since the original lender for the property wins at auction 80 percent of the time, forming a relationship with the lender is a good idea.
Set a bid price and stick with it. Avoid becoming emotionally involved in the bidding process and over bidding. Have a solid idea of what you are investing in, how much you are willing to pay for it, and what type of return you expect.
Remember; the goal of investing is to minimize risk and maximize profit. By doing your homework before the auction, you will be sure to do both. Never buy a property blindly. Doing so only sets you up for failures that will cut into your profit margin.
James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing
Article Source: http://EzineArticles.com/?expert=James_Klobasa
By James Klobasa
You can too if you do your research and avoid common pitfalls.
With every type of investment, there is risk. In most cases the higher amount of risk that you are willing to take results in larger returns on your investment. The same is true in real estate investing. This means that the properties that stand to make you the most money also present the most challenges.
While there are three stages of the foreclosure process where it is possible to purchase the distressed property, only one offers the greatest return. This is the Sheriffs sale or auction phase. If you are able to purchase a property at this time you could realistically take ownership of the property for as much as 45 percent under the listing price of the home. But with this reward comes great risk
The greatest way to minimize risk when investing in real estate is to do your homework. Heres a checklist to help you out:Find out how much of a cash deposit you will need at auction. In many cases this is 10 percent with the remaining balance due within months, weeks, days, or hours. Make sure that you know the laws in your state and county.
Try your best to inspect the property before the auction. If you can not inspect the property, strive to build up a relationship with the homeowner so that you can learn about any costly repairs that need to be done and calculate them into your bid price.
Verify that there are no other liens on the property through a title search. If you purchase the property at auction, these will become your responsibility.
Know your competition. Since the original lender for the property wins at auction 80 percent of the time, forming a relationship with the lender is a good idea.
Set a bid price and stick with it. Avoid becoming emotionally involved in the bidding process and over bidding. Have a solid idea of what you are investing in, how much you are willing to pay for it, and what type of return you expect.
Remember; the goal of investing is to minimize risk and maximize profit. By doing your homework before the auction, you will be sure to do both. Never buy a property blindly. Doing so only sets you up for failures that will cut into your profit margin.
James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing
Article Source: http://EzineArticles.com/?expert=James_Klobasa
auction aware buyers and sellers beware
Five Top Tips When Buying Property At Auction
By David Carter Platinum Quality Author
Buying property at auction can often produce a bargain purchase, but equally there are many pitfalls when buying in this manner. It is quite easy to make a disastrous mistake, so beware. Here are my five top tips to consider when buying a house at auction.
One: Always go and see the property with your own eyes. It may seem so obvious, but you will be surprised how many people don’t. If you don’t inspect yourself, or appoint a qualified advisor to do so, how do you know the location is acceptable? If you don’t go, you could end up buying a house situated under an electricity pylon, or opposite a sewage farm, or even worse, ten yards, or ten feet, from a rapidly eroding clifftop. The property might look incredibly cheap on the glossy pages, but in those cases would it really be so? Don’t be persuaded by fancy colour photographs in the auctioneer’s catalogue, and his flowery descriptions. That’s their job, to sell to unwary buyers. Remember Caveat Emptor: buyer beware. Always see the house with your own eyes, or hire a pair of reliable eyes to see it for you.
Two: Prepare accurate costings. It is pointless buying a house for 100,000 that needs another 100,000 spending on it, if it will only be worth 170,000 after the work is completed. Work out actual costings carefully, and don’t forget to include financial arrangement fees, lawyer’s fees, and if you are planning to sell straight away, your selling costs too, such as Agent’s fees and any loan repayments. Professional fees can quickly add up, and if your potential margin is a little skinny in the first place, you could find those fees eating your entire margin away, or even worse than that, you might even end up having to throw cash at your project to bring it to a successful conclusion. Accurate arithmetic is an essential. Never stray off your planned path.
Three: Set a ceiling limit to your bidding, and NEVER bust it. In the heat of the moment, in the excitement and anticipation of the auction room, a room that can be packed with eager buyers orchestrated by an experienced enthusiastic auctioneer, it is very easy to become sucked into the excitement of the moment. It is very easy to be persuaded to pay more than you meant to. When the auctioneer says laughingly “come on, what’s another 5,000?” Or “you’re not going to miss it for a mere 5,000 are you?” Remember that this is your money he is talking about, coming out of your profit margin. As soon as you hear comments such as that, you should be reacquainting yourself with your absolute maximum figure.
Never forget, it is the auctioneer’s job to relieve the buyers of as much money as possible, and you’re one of the buyers! The auctioneer is NOT your friend, he is not acting for you, he is acting for the seller, so treat them with the utmost care. Set a ceiling price and don’t bust it. There is always another property round the corner; there is always another auction next week or next month. And ask yourself this: would you rather buy the property you really want, at 25,000 over your maximum price, or would you prefer to pick up a bargain next time? Some times it can take a very long time to get rid of a badly bought property. So don't buy bad!
Four: Read the contract terms, read the auctioneer’s terms. This is most important, for if you don’t read all the small print, what are you letting yourself in for? For example does the auctioneer charge a buyer’s premium? What charges will they levy on you? What methods of payments will they accept? How much of the full cost of the house will they expect you to pay when the hammer falls? If you don’t read all the small print, how will you know what you are agreeing to. The small print is there for a reason, and it is saying something. It is up to you to make sure that you know what that is. Remember, when the hammer falls, you are contracted to buy that property, come what may, and that includes all the terms and conditions that the auctioneer laid down beforehand. There is no turning back. If you don’t know the terms, you are asking for trouble. Read the contract terms thoroughly, every time.
Five: Get to the auction in good time. Find yourself a nice seat and listen carefully to the opening announcements. Just like the terms and conditions, these announcements might be important. You’ll miss them if you arrive twenty minutes late, and you would only have yourself to blame. Pay attention to what is happening, and listen carefully. Don’t worry about scratching your nose and buying a house by mistake. That doesn’t happen. And before the time comes for you to get involved, decide how you are going to bid. You could raise your hand, you could catch the auctioneer’s eye and nod aggressively, you could wave your card or program, but stick to one method. Auctioneers can become confused if one moment it’s a nod, the next a nose scratch, or an ear pull!
Buying a property at auction can net you a bargain, but only providing you have done your homework beforehand. Don’t allow yourself to be caught out on basic errors, and the chances are you will find it an exciting experience, and walk away with a bargain. Never worry if you miss a particular property, for there is always another one around the corner, and there is nothing worse than paying far too much just because you fell in love with it.
David Carter’s latest published work is SPLAM! Successful Property Letting And Management. Splam! contains over 240 pages of hints and tips on how to start your own property business on a limited budget, and how to successfully let residential property. You can view actual extracts of the book at http://www.splam.co.uk and order a download or a hard copy at this site or you can go direct to the publishers at http://www.lulu.com/dc. He also runs a holiday cottage website where you can access over 7,000 holiday cottages, apartments and villas worldwide at http://www.pebblebeachmedia.co.uk. Don’t you deserve a holiday? Well of course you do! You can contact David on any matter any time at supalife@aol.com
Article Source: http://EzineArticles.com/?expert=David_Carter
By David Carter Platinum Quality Author
Buying property at auction can often produce a bargain purchase, but equally there are many pitfalls when buying in this manner. It is quite easy to make a disastrous mistake, so beware. Here are my five top tips to consider when buying a house at auction.
One: Always go and see the property with your own eyes. It may seem so obvious, but you will be surprised how many people don’t. If you don’t inspect yourself, or appoint a qualified advisor to do so, how do you know the location is acceptable? If you don’t go, you could end up buying a house situated under an electricity pylon, or opposite a sewage farm, or even worse, ten yards, or ten feet, from a rapidly eroding clifftop. The property might look incredibly cheap on the glossy pages, but in those cases would it really be so? Don’t be persuaded by fancy colour photographs in the auctioneer’s catalogue, and his flowery descriptions. That’s their job, to sell to unwary buyers. Remember Caveat Emptor: buyer beware. Always see the house with your own eyes, or hire a pair of reliable eyes to see it for you.
Two: Prepare accurate costings. It is pointless buying a house for 100,000 that needs another 100,000 spending on it, if it will only be worth 170,000 after the work is completed. Work out actual costings carefully, and don’t forget to include financial arrangement fees, lawyer’s fees, and if you are planning to sell straight away, your selling costs too, such as Agent’s fees and any loan repayments. Professional fees can quickly add up, and if your potential margin is a little skinny in the first place, you could find those fees eating your entire margin away, or even worse than that, you might even end up having to throw cash at your project to bring it to a successful conclusion. Accurate arithmetic is an essential. Never stray off your planned path.
Three: Set a ceiling limit to your bidding, and NEVER bust it. In the heat of the moment, in the excitement and anticipation of the auction room, a room that can be packed with eager buyers orchestrated by an experienced enthusiastic auctioneer, it is very easy to become sucked into the excitement of the moment. It is very easy to be persuaded to pay more than you meant to. When the auctioneer says laughingly “come on, what’s another 5,000?” Or “you’re not going to miss it for a mere 5,000 are you?” Remember that this is your money he is talking about, coming out of your profit margin. As soon as you hear comments such as that, you should be reacquainting yourself with your absolute maximum figure.
Never forget, it is the auctioneer’s job to relieve the buyers of as much money as possible, and you’re one of the buyers! The auctioneer is NOT your friend, he is not acting for you, he is acting for the seller, so treat them with the utmost care. Set a ceiling price and don’t bust it. There is always another property round the corner; there is always another auction next week or next month. And ask yourself this: would you rather buy the property you really want, at 25,000 over your maximum price, or would you prefer to pick up a bargain next time? Some times it can take a very long time to get rid of a badly bought property. So don't buy bad!
Four: Read the contract terms, read the auctioneer’s terms. This is most important, for if you don’t read all the small print, what are you letting yourself in for? For example does the auctioneer charge a buyer’s premium? What charges will they levy on you? What methods of payments will they accept? How much of the full cost of the house will they expect you to pay when the hammer falls? If you don’t read all the small print, how will you know what you are agreeing to. The small print is there for a reason, and it is saying something. It is up to you to make sure that you know what that is. Remember, when the hammer falls, you are contracted to buy that property, come what may, and that includes all the terms and conditions that the auctioneer laid down beforehand. There is no turning back. If you don’t know the terms, you are asking for trouble. Read the contract terms thoroughly, every time.
Five: Get to the auction in good time. Find yourself a nice seat and listen carefully to the opening announcements. Just like the terms and conditions, these announcements might be important. You’ll miss them if you arrive twenty minutes late, and you would only have yourself to blame. Pay attention to what is happening, and listen carefully. Don’t worry about scratching your nose and buying a house by mistake. That doesn’t happen. And before the time comes for you to get involved, decide how you are going to bid. You could raise your hand, you could catch the auctioneer’s eye and nod aggressively, you could wave your card or program, but stick to one method. Auctioneers can become confused if one moment it’s a nod, the next a nose scratch, or an ear pull!
Buying a property at auction can net you a bargain, but only providing you have done your homework beforehand. Don’t allow yourself to be caught out on basic errors, and the chances are you will find it an exciting experience, and walk away with a bargain. Never worry if you miss a particular property, for there is always another one around the corner, and there is nothing worse than paying far too much just because you fell in love with it.
David Carter’s latest published work is SPLAM! Successful Property Letting And Management. Splam! contains over 240 pages of hints and tips on how to start your own property business on a limited budget, and how to successfully let residential property. You can view actual extracts of the book at http://www.splam.co.uk and order a download or a hard copy at this site or you can go direct to the publishers at http://www.lulu.com/dc. He also runs a holiday cottage website where you can access over 7,000 holiday cottages, apartments and villas worldwide at http://www.pebblebeachmedia.co.uk. Don’t you deserve a holiday? Well of course you do! You can contact David on any matter any time at supalife@aol.com
Article Source: http://EzineArticles.com/?expert=David_Carter
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