Buying a real estate property is already tough on its own so imagine how it feels to participate in commercial property auctions. These highly intense accelerated marketing and bidding process takes not just guts but also a lot of calculated strategies and preparation. If you want to win one then you’ll have to arm yourself starting off with the following tips.
- Make it a point to read through.Each auction and every organizer differs and although majority may seem to have similar processes, they don’t offer the same opportunities so expect a different experience from each one. This is why it pays to do your research beforehand. Read up on the organizers and the event itself as well as look into the assets being sold off. Chances are you’ll receive a newsletter or brochure, physical and/or digital.
- Know what you’re getting yourself into.
Auctions have a lot of potential but they also require a lot from its participants and we don’t mean money. Bidding is as much a talent as it is a learned skill. Experts even suggest individuals to simply sit in and observe during their first commercial property auction. This way, one gets a grasp of what to expect.
- Prepare financing ahead of time.
Winning the bid is only the beginning. One has to provide for the necessary requirements to garner a win and in this case that can be translated to the down payment. It has to be paid at the auction day otherwise one loses the opportunity be default and gets disqualified. Besides, financing is not easy to come by and most of us will have to wait to get hold of it so prepare it early.
- Don’t play transparent.
Spotting a commercial property that fits the bill isn’t easy and when you do make sure not to tattle. Keep your thoughts and your emotions to yourself otherwise they can be used against you. A seller may increase their asking price or other bidders may see how promising the property is and compete against you.
- Validate and confirm information.
Before even attending commercial property auctions, take a look at the available assets and research on them. Validate seller-given information and do not hesitate to schedule a personal visit. Open houses are welcome. Also, it pays to bring a chartered surveyor with you to help you authenticate data and uncover others more.