Property Auctions
The auction process can be an overwhelming experience however, being prepared with a rock solid plan of attack will help you to come out a winner on the big day.
By following these five basic steps, you are well on the way to making your day at the auction a success.
1. Set a limit and stick to it
One of the most important auction tips is to keep your emotions in check. Have a game plan, take the time to meet with your agent and discuss the best bidding strategy to suit your budget.
2. Research
Research comparable properties in surrounding areas and educate yourself on where the property you are interested in should sit in the market. By doing this initial research you will know where you stand, be able to spot a bargain and it may even result in a new auction budget, higher or lower than you had originally planned.
3. Get Legal Advice
Whilst your agent will be acting in your best interest, it is always best to get some independant legal advice prior to the big day. This impartial advice can facilitate a smoother transaction, piece of mind.
4. Preparation = Success
Don’t forget, the winning bid at an auction results in a binding contract and if you are the winning bidder, your finances must be in order before auction day. Investigating all of your finances in advance will result in a more strategic auction budget and price guide as well as cement your confidence when bidding. You will also need a deposit which is usually 10 per cent of the purchase price. For professional mortgage and lending advice, talk to Ray White New Farm’s in house mortgage broker from the Loan Market.
5. Don’t fly blind
As a basic minimum it is advised that you attend one auction in advance so you are aware of how the process works. Familiarise yourself with strategies of bidders, the procedures, rules and regulations.
