Commercial property auctions are a great avenue to score some amazing deals. It’s an exciting one too and anyone who’s had their hand in one of these knows too well the thrill it gives and once done right, the perks reaped thereafter.
But at the end of the day, auctions are serious matters especially since we’re injecting the element of real estate. It’s not easy and it’s downright challenging. A newbie will easily feel overwhelmed if not frightened out of their wits.
But that shouldn’t be the case with enough preparation. That said here are some requirements when attending commercial property auctions.
- A LIST
Create a list of things. For instance, what do you need? What features or characteristics do you seek in a commercial property? This should help establish the next steps to be taken. Consider it a roadmap or a guide.
Be aware of what goes into commercial property auctions: the processes, the requirements, the benefits, the costs. After all, you can’t go to battle without knowing the details. That’s not the way to win.
Each auction is unique in terms of the properties being sold and the organizers. This means that one has to do adequate research and come to an understanding about the procedures set by the organizers, the requirements they need and even the details of the properties being auctioned off. Speaking of which, make a short list of those assets and run a background check on them. We also advise paying them a visit beforehand.
This type of platform comes with a tight payment schedule. After winning a bid, one has to pay for the down payment right then and there which can constitute up to 20% of the amount agreed upon. The remaining balance is then scheduled to be paid within a limited time frame, sometimes even as short as 28 days. This necessitates the need to prepare financing ahead of time since we all know it takes a while to pool these resources.
Commercial property auctions can easily bring out one’s competitive side so make sure to know when to put the plug. Don’t let emotions run over logic. Bid within one’s means and only for assets that you truly need.
You have to be careful when playing your cards at commercial property auctions. Never speak too much, at least in terms of how much you’re willing to shell out on which properties and what your plans are. Others can use these details to your disadvantage.