Regardless of the strategy or science you adopt, it is important to take these steps BEFORE you attend an auction.
Pre-approval
First and foremost, secure finance pre-approval so you know your true borrowing power. Generally, contracts for sale by way of auction do not allow for a cooling off period. Therefore, having certainty around your borrowing capacity is important and allows you to bid with confidence.
Research
Do your research. Inspect as many comparable properties as possible to know the market. Jump online and search for the most recent sales in the area via realestate.com.au, Domain or Homely to get a real time gauge of the market value in the immediate area.
Study other auctions
Attend other auctions to understand how they work and experience different auctioneer styles. Determine the bidding method that will work best for you and is consistent with your personality. When bidding, it is not just about presenting confidence, it’s also about remaining in control.
Keep your budget to yourself
Maintain an advantage by keeping your budget to yourself to ensure this is not shared with other potential buyers or the vendor who could use this to their advantage. In particular do not tell the agent in advance what you are really prepared to pay for the property.
Careful inspection
Inspect the property thoroughly, take measurements if you need to and make your investigations before auction including building and pest inspections – you don’t want any nasty surprises after the gavel strikes and you have to sign the purchase contract!
Review contracts
Show your solicitor the contract and arrange for any necessary amendments to be made prior to the auction. Once the hammer falls, you are committed and no further changes can be agreed.
As your finance specialist we work with you to ensure you have your finance pre-approved prior to auction AND prior to making an offer for a private sale. Remember, due to our extensive knowledge of the range of lenders we have available and the variety of interest rates between them all, we can help you find the right finance to suit your situation. Contact our office today if you have any questions regarding finance and pre-approvals for auctions or private sales.
