Buying land at an auction can be a great way to get a deal. Large pieces of empty land are often sold this way. However, the auction format does have some peculiarities, and that does cause some people to make mistakes when bidding on land. If you want to have a successful time at a land auction, here are some key mistakes to avoid.
Bidding Because “You’re Already There"
You've spent the time and energy to get to the auction so this can make you feel obligated to bid. If you arrive and realize the land is not, in fact, right for your needs, just leave. Don't feel obligated to bid just because you previously planned on it. Find another piece of land that better suits your needs, and wait to bid on that one.
Not Looking Over the Whole Property in Person
Especially when you're bidding on multiple acres, walking the land can take time. You might be tempted to look at the key parts, look over a map, and call that good enough. However, you would not want to end up winning the land only to find that the parts you did not look at had some undesirable features. Land is a big purchase, and you should always walk the entire property before you make a decision as to whether you should bid. Arrive early if you're worried about having time to do this.
Getting Caught up in a Bidding War
If someone outbids you, then your instinct is probably to outbid them. This is, after all, how an auction works. What you don't want to do is get so caught up in bidding that you bid more than you can afford. To avoid making this mistake, decide before the land auction exactly how much you are willing to spend at the very most. Bring a friend or family member with you, and tell them to make sure you do not over-bid. If you lose the auction, let it roll off your back. There will be another piece of land that you can afford.
If you avoid these mistakes at a land auction, you should have a better day — whether it ends with you having bought a piece of land that suits you, or having observed and found that a particular plot of land isn't the right fit for you. There will be other land auctions and your perfect fit is out there!
Share21 October 2021
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