Auction day can be a roller coaster for both buyers and sellers, so we thought we would provide you with a few tips on how to be prepared and what to expect.
1. 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.
2. Get Legal Advice
Whilst your agent will be acting in your best interest, it is always best to get some independent legal advice prior to the big day. This impartial advice can facilitate a smoother transaction, piece of mind.
3. Talk to a broker
Its always best to seek advice from an independent mortgage broker as opposed to your bank. They can provide a bank approval to give you confidence to bid and can organise for free upfront bank valuations. Talk to Paul Hixon from the Loan Market who is one of the most highly respected, recommended and experienced mortgage brokers in the country.
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.
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.
6. Set a limit and stick to it
Have a game plan, take the time to meet with your agent and discuss the best bidding strategy to suit your budget.
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