The auction process can be daunting and emotional, especially when you realise there is little room for error.
When you buy a property at auction, you commit to a binding, unconditional contract, with a 10 per cent deposit – and no cooling off period.
If you know what to expect and stick to a plan, you’re more likely to stay focused and keep your emotions in check. Prepare yourself to bid at auction with the following 5 top auction tips, to ensure you get a great buy at a great price.
1. Get to know auctions
Before throwing yourself in the deep end, get familiar with the territory. Attend as many auctions as you can to gain an understanding of how they work. Talk to agents and get to know the difference between the price quoted and the final result.
2. Do your homework
Before the day of the auction arrives, seek advice from finance consultants and organise your finances. Have the sale contract checked by a solicitor, and get condition reports and pest inspections for the property you want to buy.
3. Register your intention to bid
It is often a requirement prior to auction that you register your interest in the property. However, this does not mean you are forced to bid if you change your mind. Have photo ID just in case it is needed for further identification.
4. Stick to your bidding limit
When the auctioneer declares the property to be on the market, you can feel free to bid. You can slow down the auction momentum by making small bids, but when you reach your bidding limit, stop bidding. It’s only a good buy if it’s within your level of affordability and you get it at a good price.
5. Hand it over to a professional
If you don’t feel comfortable bidding (and you’re not alone!), consult a professional. Then you can rest assured that you won’t lose your cool at the hands of an excited auctioneer!
At Residential Projects Australia, we can organise someone to bid on your behalf. Plus we have connections with experienced finance consultants and solictors to help you through the process. Contact RPA today for the best result at your next auction.