Buying property at a tax auction is not detrimental, you just have to be sharp enough to get through the scams that are done at different auctions and prepare yourself for it. Buying a property is not an easy decision because properties cost a lot and they are super expensive. Once you have made a bid/decision and bought a property there is no going back. That is why you have to think not twice but I guess more than thrice to buy a property. Here are some things that you should avoid at the auction.
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When you are at an auction to buy a property, you have to stay intellectual and sharp. In bidding, they are raising the price after every bid and you are telling yourself that this is going to be my last bid and it’s just one lac, but in the end, after 4 to 7 bids the price is probably twice as much it started from. It would definitely disturb your budget and would cause trouble for you.
Don’t Get Caught Up in the Cheap Bids
The bids that are cheap are everyone’s favorite but these bids are always mysterious and the property on which they are bidding has for sure something fishy going on. For instance, that property could be illegal, and there could be some serious registration issues with that property. It is highly possible that that property might have some serious maintenance issues. Just assume that you will spend 6000k on buying that property and then 2000k on renovation, it would not make a good deal.
Not Doing Research in Advance
Before going to buy a property in a tax auction and not doing research on the properties that are going to be auctioned there is a big mistake. If you do research before going, you will know exactly what you need to know like where the respective property is located and what is its area in square feet. This type of information is pretty helpful in the auction because when you know most of the stuff about the properties being auctioned, you know which one is the best and on which one you should place a bid.
Sometimes, in auctions, people get scammed. The specific reason for that is when they put a last-minute entry for a bid, no one knows about that property, it was not even on the list. It might be illegal or there could be something strange about it that they didn’t want people to know about it before. You just have to stay away from these types of biddings.
Tips for Buying a Property at a Tax Auction
- Always set a budget and decide that you are not going to spend more than that.
- Always do research about the listed properties of auction.
- Do a little research about who is selling this property and what is the reason behind it.
- Review the tax deeds a night before the auction.
While you are going to buy a property at a tax auction, all that you have to do is stay alert and act wisely. Don’t get yourself in the bidding race, most of the time this thing happens that if you are showing an interest in buying something at an auction, someone or your competitor would get jealous and they would continue to bid against you. This would only end up getting the price of the property high, whenever you sense a situation like this get out from it then and there.
Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in Sigma Properties |Taj Residencia. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.