Going Once… Going Twice… SOLD!

Buying a property at auction is one of the most exhilarating experiences in a life time, and on the other hand can also be one of the most stressful.  The good news is that you avoid the stress of an auction with a little planning, guidance and understanding of the auction process. Prior to placing a bit on a property for sale by auction you need to be sure that you have completed all essential research and preparation. The most important things to consider are:

  • Pest & building inspections
  • Securing unconditional finance approval (if necessary)
  • Have your solicitor or conveyancer carefully read through the contract of sale
  • Ensure you are aware with any conditions of the sale

Just like purchasing any property that is on the market, do some research on the local area in which you wish to buy, speak with the neighbours and review any recent relevant sales that may be comparable to the property you are interested in. this will ensure you have a realistic price in mind based on factual evidence. Auctions are usually held on the site of the property and come auction day. Should you wish to bid for the property you will be required to register your details when you arrive. Ensure you arrive to the auction early to allow time to have one last through look through the property prior to bidding. This will also allow time to gather your bearings and review your bidding strategy.

Tip: Attend multiple auctions in the lead up to yours; this is a great way to get familiar with the process and pace of the auctioneer.

Once the auctioneer commences the proceedings, he or she will describe the property and also the contract of sale. The auctioneer will then usually ask for an opening bid or offer, this is where the excitement starts to build. Other potential buyers will usually bring along family and friends for support, there will also be a number of bystanders present at the auction. Bid confidently and strongly, show the crowd you are serious.

Tip: Don’t be afraid to be the first bidder, a confident attitude and a strong bidding strategy will assist in securing the property.

Should you be successful at the end of the auction you will be asked to sign the contracts and pay the deposit. People that don’t have a check book can usually electronically transfer the funds online. Once everything is finalised its time now to pop the Champagne and begin the celebrating your new home.

Follow: Subscribe to this post's comments