Important advice before you bid
1. Get to know the background of the property – all the background. 2. Do your homework and know all the conditions. You need to be aware of the deposit costs and how much you need to pay and by when. Often there are strict rules about the timeframe in which you have to raise the money, so it may not be suitable if you are using a bond.
3. Know your price limit. When you are in an auction room full of people wanting the same property, you need to be clear about your price to make sure you do not spend too much due to the emotion of the process.
4. The property is generally sold on a “voetstoots” basis. This means you need to clearly note the risk associated with the quality of the property’s finishes and faults.
5. You need to consider the risk of the property having rental tenants. In the event of an eviction, this can be a long and cumbersome process.
6. Beware the risk of hidden costs such as outstanding rates, taxes, levies and claims. In all instances there is no recourse.