Auctions can be nerve-wracking, high-pressured, and an emotional experience that property buyers may face. The housing market conditions and a property’s fundamentals have the most impact on price, so it’s important to be equipped with a few tips before making a bid at an auction so you can feel prepared and hopefully secure a property you want.
1. Get your pre-approval & finances ready
Contact us to give you an indication of how much you can borrow and get an understanding of how you are going to fund the purchase. You will be able to discuss different lenders and loans options that best suit your personal needs and circumstances.
You’ll also get an understanding of the other associated costs when buying a home. Some of these costs include conveyancing and legal fees, stamp duty, mortgage registration and transfer fees.
By being informed about what costs are involved, you will have a better idea of what properties to look for within your price range. You will be able to bid more confidently without going over your budget.
(Please note, a pre-approval or conditional approval is subject to verifications of your financial information and valuation of an acceptable residential property.)
2. Attend as many auctions as possible
Familiarising yourself with the auction process is essential. Attend auctions of similar properties in the area and get a good sense of the auction atmosphere – understand the auctioneer language, their use of body language, and other purchasers bidding styles. This may help you with your own bidding strategies.
3. Understand the market
Get to know the property market and property values by doing your own research. See what other properties are selling for and get comparable sales (sales within an area) from the selling agent or a local real estate agent.
4. Contract of Sale
Obtain a copy of the contract of sale for the property you are interested in from the selling agent. Get it reviewed by your solicitor so you know what conditions are in place and request amendments to the contract if required. Some critical items to discuss with your solicitor are the deposit amount payable, cooling off period, and settlement date. Your solicitor should act in your best interest.
5. Building and pest inspection report
Building and pest inspections can help safeguard property buyers against buying a property that is not structurally sound or that has any major or minor problems. Major structural issues can be very costly which is why obtaining a report before making a purchase is vital. You will know the condition of the property, whether it is structurally sound and learn of any other hidden problems that you were not aware of.
We hope you’ve found these auction tips helpful. If you’re thinking of attending an auction soon, we wish you the best of luck. Be prepared and confident, and hopefully your next bid at an auction is successful.