Questionnaire: Should I Buy at Auction?

Buying a property is a big decision. You’re unlikely to have ever spent that much money on one purchase before so it should not be entered into lightly. We’re all too aware of the problems that can arise in the economy which make owning a home difficult – it’s important to make sure you at least have your finances in check and haven’t rushed into anything in order to make sure you’re as prepared as possible.

This questionnaire will help you decide whether buying a property is a good decision or not for you personally. Just answer the questions below and tally up the number of times you answered A or B then check out the results below.

Questions

1. Do you cope well under pressure?

A: yes B: no

2. Do you stick to budgets?

A: yes B: no

3. Do you have the time to dedicate to renovating a property?

A: yes B: no

4. Do you have the money to renovate a property?

A: yes B: no

5. Are you ok with the idea of having to wait to get your dream house?

A: yes B: no

Results

If you answered mostly As….

Then you are ready to buy at a house at auction! You have the patience to wait for the property you want to come up and indeed wait some more if that property goes to someone else. You are able to stick within your budget and will not exceed that, even in pressure-filled situations. You are willing and able to renovate a property if needed and you have the time to do so.

If you answered mostly Bs….

You should probably look at other options. Buying at auction can be quite stressful, there is a lot of pressure involved at the auction itself, as well as excitement, and it is important that you can keep a level head. You must be able to stick within your set budget because if you do not then you could find yourself bidding more than you can afford for a property. Once the hammer goes down the sale is legally binding so you could find yourself in a lot of trouble!

Many properties bought at auction are in disrepair. You can get a really good bargain at a property auction but the chances are you will have to do a lot of work on it to make it habitable. Therefore you must be willing to dedicate the time to it. If you do not have time to dedicate to renovating the property then you will struggle. Of course renovations also need money so you need to have money set aside to spend on this.

Finally if you are wise and stick within your budget you may see several houses you really want sell to other buyers for over your price range. If you are going to buy at auction you need to be willing to try and try again in order to find the property you want, at the right price.

Buying at auction can be fun and exciting but it is also serious business and if you want to get it right you must make sure you are prepared.

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