Attending an auction can be daunting, particularly when you’re buying your first home. But are auctions really as scary as they’re made out to be?
Here are some tips to help you win your auction and keep your cool!
When you’re buying a property, you need to have loan pre-approval. Attending an auction with a blank chequebook can spell disaster in the long run. Save yourself the future stress and have your finance ready to go. It’s a good idea to have an ideal budget, what you want to spend, and an upper limit – the most you are willing to pay – which is non-negotiable. This way, if you’re in love with the property, you can raise your bid a little higher than your ideal while still being sure of staying within your means.
Attend other auctions
Before you start bidding, it’s a great idea to familiarise yourself with how an auction works. Attend an auction or two as an observer so that you know what to expect and feel more comfortable. Of course, the experience will change when you’re actually bidding, but understanding the process and being comfortable in the setting will help you keep a clear head when you start to bid.
All bids at an auction are binding and unconditional, so it’s important to be prepared. Get your finances organised and pre-approved, and make sure any building and pest inspections have been carried out so that you’re ready to go ahead with the sale as soon as the auction is finished.
Real estate agents are a wealth of knowledge when it comes to auctions. If you’re nervous about what to expect, speak to our real estate agents and property managers. They will explain what will happen and ensure that you’re ready to go.
When your heart is set on a property, being objective is incredibly difficult. But detaching yourself from the situation is very important; getting caught up in the heat of the moment can result in your paying far more than you can realistically afford or than the property is worth.
Get a good idea of what you think the property is worth. Look at similar properties sold in the area to discern the average selling price. If the auction price rises significantly above this value, you’ll need to decide whether you should raise your bid or wait for something else to come along.
If you find it hard to be objective, ask a friend or family member to attend the auction with you to help give you perspective and provide a voice of reason.