Top tips for buy­ing a home at Auc­tion

Shepparton News - SN Local Real Estate - - NEWS -

It is easy to make a mis­take when pur­chas­ing a home at auc­tion, but here are seven top tips to make auc­tion re­sults work for you. Buy­ing a home at auc­tion can be es­pe­cially daunt­ing, so fol­low th­ese sug­ges­tions to en­sure you are pre­pared for the big day.

There is no such thing as too much re­search

When it comes to prop­erty auc­tions it is es­sen­tial to be pre­pared. Know the mar­ket value in­side out for the prop­erty type and lo­ca­tion you are in­ter­ested in to avoid over­pay­ing for any one prop­erty. There is al­ways a re­serve price at­tached to each prop­erty, so don’t be overly ex­cited if the start­ing price seems too good to be true. Re­search the pre­vi­ous six months of auc­tion re­sults in your area to gain a good idea of the mar­ket.

At­tend lots of auc­tions

Go­ing to auc­tions can be te­dious, but it is es­sen­tial to at­tend as many as pos­si­ble to get a feel for the process. Know­ing what is likely to hap­pen will give you con­fi­dence, which is of­ten a deal breaker when the bid­ding be­gins. Take note of any win­ning strate­gies from bid­ders, and com­pare the start­ing price with the win­ning bid.

In­spect be­fore bid­ding

Once the gavel slams down on a suc­cess­ful bid there is no go­ing back, so make sure any in­spec­tions are com­pleted be­fore the auc­tion. In ad­di­tion, try to view the prop­erty sev­eral times be­fore bid­ding and chat to the agent as much as pos­si­ble to gain any in­sights.

Le­gal­i­ties

Don’t try to save hun­dreds of dol­lars by risk­ing thou­sands. Have a con­veyancer in­spect the con­tract be­fore bid­ding and know ex­actly what is in­cluded in the sale. There isn’t a ‘cool­ing off pe­riod’ when pur­chas­ing at auc­tion, so you have to be sure.

Money mat­ters

The money must all be in place be­fore plac­ing a bid as around 10 per cent of the pur­chase price is im­me­di­ately payable. By plac­ing the win­ning bid you are en­ter­ing into a bind­ing con­tract, so make sure all your fi­nances are in place be­fore rais­ing a hand. It is com­mon for the start­ing bid to be around 20 per cent less than the fi­nal sell­ing price to lure in as many buy­ers as pos­si­ble. Cal­cu­late which prop­er­ties you can af­ford by thor­oughly re­search­ing the mar­ket rather than look­ing at start­ing prices.

Keep calm and carry on

If there is a chance you might get car­ried away and bid more than you can af­ford, or be too ner­vous to bid at all, con­sider hav­ing some­one at­tend the auc­tion on your be­half. This could be a fam­ily mem­ber, trusted friend, or pur­chas­ing agent – just make sure they know your bid­ding limit.

Stick to the bud­get, but keep it quiet

Make sure you have a strict limit, es­pe­cially if you are on a tight bud­get, be­fore at­tend­ing the auc­tion. Auc­tions are de­signed to draw you in, so be care­ful. Never re­veal your top price as auc­tion­eers are paid a per­cent­age of the sale price, so it is in their in­ter­est for the prop­erty to sell at the high­est price.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.