With auction clearance rates holding steady in a busy auction market, a growing number of buyers are starting to hone their bidding skills to win their dream property.
There’s much more to successfully bidding for a property than turning up and raising your hand. So, below, we have listed seven tips for buying at auction.
Watch and learn
It’s a great idea to attend a handful of auctions to get a feel for them. You’ll learn how auctioneers approach their task, and how prospective buyers respond. Sometimes, bidding becomes competitive and that’s when you have to keep a level head.
Research values
To avoid overpaying, you need to work with agents and use websites to establish the likely value of a home that’s coming up for auction. Without doing this work, you’ll have no idea whether you’re about to snare a bargain or pay over the odds.
On the money
It’s vital you have a pre-approved loan before bidding at any auction. If you’re successful, you’ll be expected to put down a deposit and proceed with the transaction. Failure to do so can lead to legal action.
Serious intent
If you’re targeting a property, you should organise a building inspection before the auction to limit risk. Consider services like BeforeYouBid that turn around inspections quickly.
Strategy is critical
Never wing it. Have a bidding strategy and spending limit, which should be determined by the amount a lender has pre-approved. Always stick to your strategy whether bidding is fast or furious or slow and cautious. If you don’t trust yourself, ask a friend or agent to bid for you.
First-mover advantage
If you’ve found your dream property, you should make an offer before it goes to auction. Occasionally, the owner will be happy to avoid the stress of auction day and accept if the price is right.
Register your interest
You need to register to participate in an auction. So, turn up a few minutes early to do the paperwork and maybe chat with the agent about the degree of interest in the auction and the mood of the seller. All information is valuable!