Crimes You’re Likely to Make at a Commercial Property Auction

Business owners and even real estate investors know that in order to score the best deals, one has to be aware of the various methods and venues by which assets are sold. One very popular platform would be commercial property auction.

Described as a highly competitive open cry public sale, commercial property auctions prove to be very efficient for most buyers. Despite its set up, many people will actually find it surprising that one can acquire for lower than market value. Yes, you’ve read that right. But that’s not our topic for today. We’re here to warn you against the various crimes that you might commit and should do well to avoid when buying at auctions. Here, take a look at the following list.

CRIME: Inexperience

Experts highly advise that any newbie to the world of auctions must spend at least their first few ones observing instead of bidding. This should allow them to get better acquainted with the process and the environment. Research should initiate them as to what to expect but being there in the moment will allow them to really learn by experience.

CRIME: Overspending

Before even coming to any commercial property auction, one has to assess their needs as well as their financial capabilities. This means setting up a budget and a spending limit. Because these are very competitive platforms, it’s easy for anyone to feel overwhelmed and get swept into an emotional impulse. Biting off more than what you can chew is suicide.CRIME: Ignorancecommercial-property-auction

Knowledge is power. This adage has been as old as time and even perhaps present even before written script was invented. It makes absolute sense too. You need to research and get to know the assets up for grabs to determine which one is worth the trouble. You’ll have to look into the sellers and the auction houses and organizers. You’ll need to understand the terms, policies and requirements otherwise it’s a downhill stretch,

CRIME: Gullibility

Sales talk never goes out of style. Some do it blatantly while others aren’t even aware they’re doing it. As an investor and buyer, your job is to see beyond mere words. To do so, we go back to research. Always validate seller given facts. Have the asset you fancy pre-surveyed and visit it yourself prior to the scheduled commercial property auctions. Never rely on words alone and be so gullible you end up getting something you never bargained for.

Things Not to Do at Commercial Property Auctions

commercial-property-auctionCommercial property auction are a great venue to score that perfect asset to add to your portfolio or to utilize for your business. However promising they may be, these things aren’t very user friendly. If you want to participate in one then you’re going to have to make it a point to avoid any blunders and mishaps that come your way. In fact, make sure that you don’t commit the following crimes.

  • Coming Unprepared

Auctions are like wars in a way although less bloody in the literal sense but just as much figuratively. You need to have your strategies mapped up. You have to know how to play the game and you need to have a god gauge of what you’re fighting for. There’s a lot of prior work to do and you need to accomplish all of them.

  • Failure to Understand Terms and Procedures

Not all commercial property auctions are the same. Each one can differ either slightly or by a large scale. This makes it important that you read and understand the guidelines, procedures and requirements of each one before jumping in on the train.

  • Absence of Adequate Research

You’re going to have to research not only about the auction house and the event but also on the properties being sold off. A newsletter or catalogue shall be sent via mail and/or digital format which showcase the assets up for grabs. Take a look and research about them and distinguish which one’s you’d like to bid on.

  • Not Checking on the Property Prior to the Auction

Visiting the property ahead of time is highly recommended. Just because it’s not sold the traditional way doesn’t mean that you can’t take a closer look and have a personal visit. You can and you may likewise have a surveyor uncover and validate more facts.

  • Not Preparing Your Finances Ahead of Time

These things still involve a legal and binding contract which is why you need to be able to come up with your end of the bargain. In other words, you’ll have to provide for the upfront costs once you win the bid. You need to have money prior not after.

  • Sharing Too Much Information

Last but not the least, see to it that you play your cards as close to your chest as possible when participating in commercial property auctions. Doing so otherwise may have other bidders and even agents make use of such information against you and to their advantage.

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