If you are planning to buy at auction this spring it will pay to be well prepared.
Auction day success is not just about putting up your hand and making the highest bid. There are plenty of things to consider before your dream home goes under the hammer.
Licensed Auctioneer Will Hampson of MyAuctioneer says it is important to do your homework first, know your bid limit and understand the rules associated with the bidding process.
“Researching the market thoroughly will enable you to make a fully informed decision and bid with confidence. It’s important to be aware of your financial limits so that you able to complete your contractual obligations should you be successful”.
“Have your finance approved and inspect as many properties as possible in the market you’re looking to buy. It’s also a good idea to keep track of which properties are selling by checking the weekend’s auction results.”
While auction bidding may be a scary proposition for some, Will says you don’t have to be seasoned pro to succeed. Just have a decent plan of attack.
“You’re not going to buy a home standing on the sidelines. Bidding strongly can be a good strategy if you’ve done your research and have a good idea of what you are prepared to pay.”
“Just don’t leave it too late as the auctioneer could sell before you get your bid in. Try to meet the auctioneer and agent prior to the auction and make them aware you have an interest in buying the property. “
Some auction rules to keep in mind:
- The terms of auction should always be on display at a residential auction and most often are also on the back of your bidder’s card.
- In NSW if you are not registered the auctioneer cannot accept your bid, so make sure you register to bid.
- The agent will give you a bidder’s card which you must show to the auctioneer when you are making a bid.
- The highest bidder will be the buyer, subject to the owner’s reserve price and at the fall of the hammer the contract is formed.