What To Do If You Can’t View An Auction Property Before
Regardless of the nature of the transaction, buying property requires thorough due diligence. This is big money we are talking about here. Of course, you would want to make sure that it is going to good use and that the potential for ROI is as good as it can be.
As far as ROI is concerned, buying at auction offers some of the best margins in the market. But buying these houses is not the same as buying a house off an estate agent where you get to view it, have an inspection done and take your time coming up with the appropriate offer. Buying at auction requires quick, cash on hand action that seldom gives you the luxury of musing it over. The quicker you are at snapping up these properties, the better chance you stand at getting the best and realising excellent ROI.
But, as you can probably tell, this is a little risky. After all, how do you know for sure that what you are bidding on is actually worth it? Here is what you can do if you can’t view an auction property before purchasing.
Do a background check on the auctioneers
Some auctioneers specialise in certain types of properties and from that, you can get a rough idea of what the kind of property on auction will be. If you cannot inspect the auction property itself, then running a quick background check on the auctioneers might help. Look at:
- All the different kinds of properties they have sold in the past.
- Find an agent within the auctioneering company who can give you an idea of what is up for auction.
- Find people who have dealt with them before through the reviews online and see if they can give you any insight.
Run a title review of the property
Sometimes, you might not be able to physically inspect the property but you may be able to run a title review just to make sure that there aren’t any secondary liens to contend with after purchase. During this check, you can gather enough information about the property itself to give you a clear idea of what kind of home is under auction.
Check surrounding houses
With the above information, you can get a general idea of where the property is situated. Run a quick check on the neighbourhood and see what kind of houses stand there. You can even see how much the previous houses sold for and what kind of property values to expect after purchase. In fact, just knowing which neighbourhood the property stands in is enough to tell you a lot of what you need to know. This will paint a clear picture for you.
The trick is to try and actually see the property before bidding on it. But sometimes, this might not be possible. In such cases, the above three suggestions will help you come as close to actually viewing the house as possible.