Preparing for a Government Auction in Arizona

Many people can find great deals on stuff you can't buy in stores at government auctions in Arizona. This article is designed to provide you with the details on how to prepare for a government auction in Arizona and deal with competition. Specifics may vary from auction to auction; however, the following includes helpful and important guidelines from which everyone can benefit.
OK, I have to admit that I am baffled about the auction business. Not the whole business of auctions -- just auctioneers. Coming from a professional business background where competition and business are one in the same, I was not prepared for the wrath of my fellow, competing auctioneers.
Just like every other auctioneer, I have worked hard to establish myself in the business as honest and reputable. I built up my organization so that we could successfully bid and conduct government auctions. In the beginning, we lost quite a few contracts -- and when we lost I would call the winning competitor and congratulate them on their success.
When we began winning contracts, my competitors were not so nice. The first group called the government organization that I was to work with and made up stories of incompetence; which we had to run circles around and prove were not true. The second group who lost a contract to my firm sent out notices to their buyers stating that the government agency they were working for would no longer conduct auctions.
After I picked myself up off the floor from the shock, I was forced to wonder why such brutal competition exists. After all, there is enough business to go around and I guarantee you that neither one of my competitors have gone out of business, if anything they seem to be flourishing. I find it difficult to get away from the idea that friendly competitors breed more business and nasty competitors cut each other's throats where everyone is a loser.
The most unfortunate part of this story is that it made the auction industry look bad. It made all auctioneers look bad. Me, you and the people dishing the dirt. It added to the reputation of the auction industry lacking professionalism. That is not what I want and certainly it is not what you want. So the next time you lose a contract to a fellow auctioneer -- call them up, congratulate them and offer your help. Who knows, you may need help someday and if nothing else you will be seen as the professional that you are.
If the situation with your competitor is just too negative to even attempt to repair, you can try a very effective method -- Prayer. I pray for my competitors and for their businesses. I am sure that many of my competitors will need to be picked up off the floor to hear this, but it is true. I believe that prayer is extremely helpful in dealing with competitors. It is difficult to harbor ill feelings towards someone when they are in your prayers. It is equally challenging to say something negative about a competitor who you regularly discuss with God.
Most importantly don't make your determination of a competitor's business practices based upon the tales of your fellow auctioneers. There are so many stories that I have heard about other auctioneers that simply aren't true, yet they have circled through the auction community for years. So for the new millennium make a resolution to pray for your competitors. And don't forget to pray for yourself and your company - it will change your business and maybe change you too!
About the Author
Deb Weidenhamer is President of Auction Systems, the Southwest's most active auction and appraisal company. Learn more about what a police auction is and check out our government auctions in Arizona. Visit us online or call 800-801-8880 for more information.

How to Take Advantage of the Lowest Mortgage Rates

Most people who are getting a mortgage believe the number one factor to consider is the interest rate, and rightly so. Over the average mortgage term (around thirty years) a single percentage point in interest can mean thousands of dollars more spent on the mortgage rather than going into your pocket.
The interest rate on your mortgage is all-important, so it is definitely worthwhile learning more about how interest rates work, and how you can take advantage of low interest rates. With that in mind, here are some tips that will help you get the lowest mortgage rate.
Tip #1: Bargain from a Position of Strength
If you want to negotiate the most favorable terms for your mortgage interest rate that you possibly can, it is important that you negotiate from a position of strength. With mortgage terms and conditions relying ever more heavily on risk-based assessment, getting a low interest rate is all about convincing a lender that you are a good risk.
For the most part, this means having a good credit score, stable employment, and a good income-to-debt ratio. What can you do to improve your odds?
Get a copy of your credit report and check for errors that might lower your credit score. Take a look at this information several months before you plan to apply for mortgages to give you time to fix errors and have your credit rating adjusted accordingly.
When you apply for a mortgage, any debt that will take longer than six months to pay off will affect your mortgage eligibility. Before taking out a mortgage reduce your long-term debt, and don’t take out any loans or make large purchases until after you’re approved.
Tip#2: Know the Value of your Money
Before negotiating with a mortgage lender, you should know where your money is best spent. Will you benefit more from making a large deposit, or from buying points to lock in a low interest rate? Should you get a twenty-year mortgage or a thirty-year loan?

Example: You borrow $270,000 with a $30,000 deposit at 8% interest over 20 years. Your monthly repayments will be $2,258, and you will pay $272,103 in interest.

What if you pay a $50,000 deposit? You’ll borrow $250,000, for monthly repayments of $2,091 and total interest paid of $251,864. The larger deposit saves you $20,239 in interest and your monthly repayments are $167 lower.
Or, let’s say you reduce your mortgage to 15 years. In this case you pay $2,580 per month and pay a total of $194,447 in interest – and you save a whopping $77,656 in interest.

Alternatively, if you reduce the interest rate on the twenty-year loan by 0.25%, you pay $2,217 per month, and save $10,038 in interest over 20 years. Amazingly, reducing your interest rate by just one quarter of a percent leads to a saving of a little over $10,000.

So what does this mean? Reducing your mortgage term is definitely the best way to reduce the amount of interest you pay over the term of your mortgage. However, to vastly improve your negotiating power, you are better off increasing the size of your down-payment. This way, you can negotiate a lower interest rate, and even a small reduction leads to big savings.
Tip #3: Buy Points and Lock in a Low Rate…Possibly
When you are in the midst of mortgage negotiations, there are a couple of optional extra steps you can take to reduce your interest rate, but remember, it is not always financially prudent to do so. Every case is different, so do not assume these steps are inherently beneficial.
If your lender offers points (most do) you can purchase points to reduce your mortgage interest rate. This can be a very good way of saving money over your mortgage term, but it is extremely important to do the math and make sure you are saving more in interest than you spend on points.
If you feel confident (and knowledgeable) enough, you can try to lock in a low interest rate. This means your lender agrees to lock in your interest rate at a rate you agree upon, until your mortgage is processed. If interest rates rise, you get to keep the lower rate, but you are still locked into the higher rate if they fall.
Tip #4: Get Pre-approved

What does pre-approval have to do with getting a lower interest rate? Simple, if you get the mortgage before you go looking for a house, time is not an issue, and you can negotiate at your leisure. If you wait till you have found the house of your dreams, you are going to feel pressured to get that mortgage ASAP, and that leaves you in a poor bargaining position.
About the Author
Jeremy Foster is a freelance writer who writes about financial products pertaining to the mortgage industry such as the lowest mortgage rates.

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