expert-q-a

Dealing with auctions

By Phillip Tarrant

An increasing number of properties are being put up for auction, much to the dislike of rookie property buyers.

Trawling through property listings in recent months, I’ve been overwhelmed at just how many properties are going for auction, rather than private treaty.

Indeed, it’s not just my guesswork, according to RP Data’s Cameron Kusher, the volume of properties going to auction in 2010 has indeed been substantial.

He says the volume of properties going to auction between mid-April and November this year was noticeably greater than the volume of auctions undertaken at the same time last year.

So if you’re looking at buying property, chances are you’re going to have to encounter an auction.

While it might seem scary and you might prefer to avoid anything auction related, as with anything, experience is key. In other words, it’s time to take yourself out to discover what an auction is all about.

Aspiring property buyers can improve their auction know-how by simply familiarising themselves with the process – well before they need to actually take part.

Succeeding at auction all comes down to market knowledge and confidence, and by getting out and watching a few, you’re going to be much better placed to brave the big bid when a property you like comes on to market.

As well as attending auctions in order to understand the process, if a property you’re seriously interested in is put up to auction, it’s also a wise idea to find out who the auctioneer is and get along to a couple of their auctions to see just how they work.

As long as you do your homework, auctions needn’t be the scary unknown they are. By getting out and about and experiencing as many auctions in your desired location as possible, you’ll be much better positioned to wade into the auction game with confidence.

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