Nerves and excitement always bubble up when auction day arrives – it’s that moment of truth when you bid for the home of your dreams.
With so much at stake, you must be sure your target property meets your criteria, you’ve done all the relevant inspections, you are clear on your finances and how high you can bid.
Below are six tips for you to double-check your priorities and get your game day strategy in place before attending an auction.
- Set your maximum bid
It sounds obvious, but many people get carried away and blow through their budget. While as agents, our job is to achieve the highest price possible for our sellers, there are legal obligations that come with winning a property at auction. If your lender won’t go as high as you did in the auction, you still need to find the funds to make up the shortfall.
- How much do you want it?
An essential question: Check this property against the list of priorities you made before you began the search for a new home. If it’s not ticking all the boxes, it may pay to be a little more cautious.
- Is this a long-term play
If you’re looking for a family home, can you see yourself there in 20 years? Will it cope with a growing family and teenagers? If the answer is yes, then don’t let anyone bidding in small increments beat you.
- Is the property in good repair?
Unless you’re buying a fixer-upper, consider whether there are likely to be any renovation challenges. Your building inspection will advise you of any essential items that may need addressing and this should factor in your bidding. But if you intend to update the kitchen or bathroom or make major changes, you should expect to recoup the cost of that work with the growth in value when you decide to sell, not when you buy.
- Keep bids real
During the auction, ask yourself if the highest bid reflects the current price trends for this type of property in the area. It can pay to have attended auctions of similar properties in the lead up to see how bidding performs and so you have a good comparison.
- More fish in the sea
What makes this property so unique? Suppose you get beaten to the property, is that the end of the world? No. More properties are always coming on the market. Don’t panic, as the right one is waiting for you.