property-auctionsProperty auctions are one of the best avenues to score that dream real estate investment but why are there still a good number of people who feel apprehensive towards it? Misconceptions are definitely to blame and today we’re about to set the facts straight and make you see the light.

Misconception: “Assets sold in auctions are those that have been foreclosed.”

Although it is true that many assets sold in property auctions have been previously foreclosed, to generalize them would be wrong. Owners and brokers make use of the venue for other reasons too. First, there’s the immediacy. Heirs will sell in order to be able to divide the estate in cash, for example. Second, it offers a good market. Investors who have found themselves in a slow economy may use it to hasten their disposal and earn.

Misconception: “You can always score a property for lower than what it’s worth.”

One of the biggest charms that an auction holds is its ability to let buyers get hold of an item for lower than its actual market value. But this is not a guarantee for everyone. If you don’t do proper research, you might end up in a bidding war and get caught in an emotional and financial battle. In the end, you pay more. This is also the reason why setting limits is crucial.

Misconception: “You can deal with your financing after you’ve won the bid.”

You’ve won the bid. Congrats but it doesn’t end there. A legal and binding contract lies therein and if you cannot comply then you’ll lose the rights to the acquisition. Most auctions will demand an upfront security deposit and down payment. The balance shall be payable in installments across a period of time. Failure to comply will make your bidding efforts futile so make sure that you’ve got the money before you even bid.

Misconception: “All auctions happen in person.”

Many do but not all. Since the emergence of technology and the internet, online property auctions have become a thing too. They’re fast and convenient and gets the job done just as much. Cool huh?

Misconception: “You don’t get to see the assets being sold beforehand.”

Before the actual date of property auctions, a brochure or newsletter is often given out to showcase and list down all the available assets at hand. Use this chance to run a background check on the items that you wish to buy. It’s okay and totally advisable to visit them even or have a surveyor check them up.

residential-property-investment2Congratulations! You’ve just recently purchased a residential property investment. The thing is it doesn’t stop there. Yes, you’ve read that right. There is definitely more work to do. First of all, you still have to make the space feel more like home. Do you want to live within empty mundane walls and hollow rooms? Of course not, that’s what we thought. Besides, we have to talk about appraisal and value preservation too.

With all that said, behold the following tips on how to add value to your residential property investment all while adding major pizzazz to it!

Tip No. 1 – Check the plumbing and update as needed. Nobody would want to have dripping faucets or an indoor flood, right? Repairs should be done where needed and if an update proves to be more beneficial and least costly in the long run then by all means do.

Tip No. 2 – Inspect and changeup electrical units. Fire is a major no-no so it’s always best to be safe than sorry. An inspection must be had to determine the electrical needs of your house. In some cases, changing the electrical wirings, sockets and light switches will be needed.

Tip No. 3 – Invest in the kitchen. The correct kitchen upgrades can really bring up the value of a residential property investment because most buyers always have this space as a priority. The kitchen is either a deal maker or a deal breaker.

Tip No. 4 – Pay attention to the bathroom. Next to the kitchen, bathrooms are a huge factor in home appraisals because it’s one of the major concerns in the real estate market. Adequate space, proper lighting and storage are tried and tested ways to update the bathroom.

Tip No. 5 – Give your lawn some loving. The exterior of the asset is as important as its interiors. It’s also the first thing that people see of the property so it would only make sense to give adequate attention and investment in it as well. So mow your lawn, clean up the curb and manicure the garden.

Adding value to a residential property investment is necessary to ensure that the asset does not drop its worth to nil. This is part of the maintenance of it all. Home owners should however be careful when it comes to any renovations because not all updates will essentially equate to an appraised value. Seek advice from experts first and discuss your plans before you get to building.