Download this auction checklist to help you get past the auction finish line!
Buying a property at auction can be a great way to get the best price on the right asset, but the inexperienced buyer could possibly find themselves in deep water if things go wrong. That’s why due diligence is a key step before you ever place a bid.
What is due diligence?
Due diligence is research that you do before bidding on a property auction. This very important step may include looking up the estimated value, reviewing title reports, estimating any repair costs, and visiting the property and surrounding neighborhood (when possible).
When it comes to buying a property at auction, doing your due diligence isn’t just part of the transaction — it should be a top priority. It’s easy to want to side-step a few of the more tedious or dull parts in order to get a bid accepted, but that can cause major issues that can come back to bite you in the end.
Why is it important?
Due diligence gives you the best opportunity to walk away from an auction having made the right choice. The right research is key to making sure a property ticks all your boxes and doesn’t come with any unwelcome surprises, like liens or other title issues.
If you are able to put in the highest bid on a property, you do so with confidence that you understand the property and have paid the right amount given your needs and intentions.
If you don’t manage to come away with the highest bid, the effort you put in before the auction will help you feel reassured that, while the right property and price didn’t happen today, it will soon.
So before auction day arrives and you enter the event, you’re going to want to get these tasks completed. This handy checklist will help you cover the need-to-know basics before you bid.