Buy Real Estate at Auction – How To Avoid Paying Too Much

Buying real estate at auction can be a daunting process. Purchasing at auction is stressful and heavily slanted towards the sellers benefit. Why? Because it brings a group of buyers together in a single place, usually right in front of the object of their desires… the house. This psychological advantage should not be overlooked when considering to purchase a property at auction.The best scenario for you, as the buyer, would be for there to be nobody to turn up but you. Can you see where I am going with this? If, of course, price is not your main motivation, and you are fine with paying whatever is required simply because you have fallen in love with the property, then of course, bidding in an auction may not present any issue for you.But like many people, especially these days, we are price sensitive and will draw the line at a certain sum and bid no further. Often it is a relief to bid your limit and find somebody behind you has made a new bid, letting you off the hook.As far as the practical considerations of bidding at auction are concerned, you need only make a gesture of some sort while referring to the auctioneer and he/she will generally assume an increment or get a feel for what you want to bid, and then state that loudly as your bid.You may already have a relationship with one of the agencies real estate people and they may be there next to you to assist you and yes, encourage you to make further bids. They may bid for you according to your instruction, and some people even do this over the phone.There are bargains to be had at auctions, but they are rare. The process typically helps the vendor sell their property fast and for the best possible price. This does not mean going to auction is not a good idea, but you should always have a figure in mind that is the absolute best representation of the properties current worth, then stick to it and be unwilling to pay a cent more.