Traditional real estate buyers often picture themselves being led through beautiful properties by a buyer's advocate eager to help them find the perfect home, but even if you prefer to take a less traditional route to homeownership, a buyer's advocate can still help you. In particular, if you want to buy a home at auction, a buyer's advocate can be essential. Here is a look at four of the critical reasons you want one of these professionals by your side before you start bidding:
1. Insider Knowledge Of The Real Estate Market
According to Australian Property Investor Magazine, the number one element you need to succeed at a real estate auction is knowledge of the property's value. Without that, you may bid too high and end up financially upside down before you even move into the property. Alternatively, without knowledge of the property's value, you may even accidentally pass up an amazing deal.
Buyer's advocates have the knowledge you need, and with an advocate beside you at an auction, you will know when it's advantageous to jump on a good deal and when you should stop bidding. Buyer's advocates buy and sell homes everyday, and they keep apprised of local real estate values. That knowledge can mean the difference between getting your dream home at a great price and losing your savings to a horrible house.
2. Expertise In Auction Activities
At the average auction, 70 percent of the bidders are investors and 30 percent are regular citizens trying to buy a home to occupy. That means that the bulk of the people at most real estate auctions are skilled bidders who understand the process.
To an auction newcomer, the wealth of experience among the other bidders can be extremely intimidating, but again, with a skilled advocate at your side, you gain the expertise you need. In addition to helping you decide when to bid or not, buyer's advocates understand the auction process – they can answer all of your questions on issues such as where to stand, how quickly to bid, how much cash you need in case you win the bid and any other questions you have about logistical elements.
3. Registration And Sales Contract Assistance
Whether you are a traditional buyer or a maverick who wants to get a home at auction, a buyer's advocate can help you wade through the paperwork involved. These professionals help you keep papers organised, ensuring that you don't waste time or lose essential documents.
Through the auction process, a buyer's advocate can help you with everything from registering for the auction – a process that is only required in certain states – to reading the sales contract. An auction sales contract should be fairly straightforward, but it's attached to a massive purchase, and to protect yourself, you should always have a real estate professional or solicitor look it over before you sign it.
4. Connections To Inspectors And Loan Professionals
A buyer's advocate can help you obtain inspector reports on the property before the auction, but if the auction house does not have those reports, the buyer's advocate can help you schedule the necessary inspections. As most buyer's advocates work with inspectors on a relatively regular basis, they know exactly whom to call, and their reliable inspectors help to ensure that you don't buy a house that looks great but is actually falling apart.
You can also benefit from their connections while obtaining financing. Buyer's advocates know many loan professionals. They can help connect you to people who are friendly and reputable, and they may even be able to connect you to special lenders who can help you access the cash you need to put down a deposit to secure a winning bid.
In the first weekend of February 2015, over 150 properties were auctioned off, with prices ranging from under $200,000 to over a million. As you can see, regardless of your budget, you may be able to find a home at auction. If you are a prospective home buyers who wants a home at auction, contact a buyer's advocate to help as soon as possible.Share