How to Spot Liars When Buying In and Out of Property Auction

When buying real estate whether in or out of a property auction, investors need an abundance of knowledge and a slew of skills and one of which is spotting liars. Because these purchases are quite hefty given the financial value of assets, it becomes all the more a necessary skill. But let’s face it. That’s a task that doesn’t come easy. Luckily, we’ve got just the collection of tips to school us in on the trade.

  • The Sense of Urgency

Sometimes you find the property you want so you go ahead and contact the sellers. You talk to them and even pay the asset a personal visit but something seems wrong. It feels hastened, too hastened in fact that you feel like they’re ready to hand the keys in a few minutes. Is this a trap? Not necessarily but it should raise red flags. When the sellers appear too urgent and in a hurry to dispose off an asset, it could mean that there are details they don’t want you to see. Lingering too long will divulge what’s been hidden, say faulty plumbing or a bug infestation.

  • The Sketchy Ads and Marketing

Listings are nothing new. They’ve been around way too long and have come to evolve into varied forms of advertising and marketing. As buyers, you need to be careful, investigative and questioning. You need to identify fact from sales talk. You need to see beyond the beautiful words and photos. You need to validate and double check. So even if you find yourself in property auctions, don’t wait out. Go visit prior to the auction day itself. The brochure or newsletter provided should give you enough head start.

  • The Photo Stealer

If you find a listing on the internet, this should allow you to do a reverse image search. This will allow you to identify if the photos are legit and were not simply stolen from another listing, website or blog. But remember that it’s also possible for sellers to have multiple listings across websites for the same asset.

  • The Body Language

Chances are you’ll meet the sellers. It’s time to gauge their body language. We all know how this works. Agitation, pinching or touching the face and hiding hands are subtle hints that a person isn’t being completely transparent. The tone of voice and pace of speaking also play a part here. It’s either they’re flat out lying or they’re hiding important information.

  • The Mismatch

Last but not the least, where there’s a mismatch of what has been said or written to what is currently being said and discussed are dead giveaways of dishonesty. If the ad says 500 square meters and now the sellers are saying it’s at 450 then that should feel sketchy on its own. In property auctions, be wary of what you see on the visit, what you read on the brochure and what is being said about it on the auction day itself. 

Avoiding the Common Mistakes at Property Auctions Online

property-auctions-onlineProperty auctions as their name suggests is a public sale characterized by awarding the asset for sale to the highest bidder. It is a form of competitive open cry bidding and participants are expected to be prepared beyond relief. However, many participating investors and buyers still find themselves slipping into the common mistakes they vow not to fall trap to. Here is a list of them.

  • Failure to come up with a spending limit…

When you step into the auction, you have to be prepared and this includes having decided on your budget limit. You cannot go and decide on it while the sale is being done. Doing so puts you off and can trigger you to spend more than you should have.

  • Not having any plan at all…

You need to have a game plan. This includes things such as your budget, spending limit, asset qualification list, research, survey results and so one and so forth. Walking into it without a plan is like falling into a trap on your own accord.

  • Wrong timing of fund availability…

When you participate at a property auction, you are likely to be asked to provide a security deposit. Even if such is not required, you will still have to pay up for certain upfront costs and arrange immediate payment plans on the asset after being awarded as the winning bidder. Your financial resources must be at the ready. They have to be available before and not after the auction proper.

  • Absence of any form of research…

You have to go out there and visit the property and have it surveyed by a professional before you close on it during the sale. You have to make sure that the asset you have set your eyes on is worth it. You need to validate certain facts such as ownership, market value, useful life, structural integrity and ongoing costs among others.

  • Lack of confidence…

You cannot let others feel your hesitation and doubt. In fact you shouldn’t have any. If you’ve prepared, planned and researched then there’s nothing to worry or fear about. You need to be confident when bidding. That’s how you win.

  • Believing in what everyone else says…

Do not immediately take what others say as a fact. This is why you plan and research in the first place. Other participants may want to force out info regarding your limit spending. Sellers can sugarcoat and exaggerate too. Be smart and don’t trust easily. Validate first.

Avoid these common mistakes at property auctions online and you’re sure to win it like a pro!

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