By following these five basic steps, you are well on the way to making your day at the auction a success.
1. Set a limit and stick to it
One of the most important auction tips is to keep your emotions in check. You have to remember that you are making a significant financial investment and with a price limit that you have set prior to auction day you will ensure you don’t over-extend yourself financially.
2. 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.
3. 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 and most importantly, you won’t end up with a dud.
4. Preparation = Success
Every person wanting to bid on a listed property MUST be registered and given a bidding card that needs to be shown to the auctioneer prior to every bid. Make sure you have your current drivers license or passport with you on the day otherwise you will not be able to bid on the property (please refer to the Bidders Guide Click here for further information). 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.
For professional mortgage and lending advice, talk to 1st Street Financial mortgage broker Jeremy Fisher on 1300 17 87 87 or jfisher@1ststreet.com.au.
5. Don’t fly blind
As a basic minimum, it is essential that you attend auctions in advance so you are aware of how the process works so that when your auction comes around, you aren’t flying blind. Familiarise yourself with strategies of bidders, the procedures, rules and regulations. Not only will this give you an idea of the auction process, it will allow you to gauge the difference between a properties advertised price and where the auction actually takes it in your current market.