Over the past decade, auctions have become the favoured method of sale for real estate agents and sellers in the property market. While this is a great option for agents to use during the sales process, it can become an exciting and stressful experience for buyers.
Preparing for an auction is a crucial step before you head off to bid, to ensure that you are ready for the day and whatever the outcome is.
Secure your finance
Before deciding to bid at auction, a key step is to ensure that you have spoken with your financial institution or lender and secured finance. On the day of the auction, if you are the successful bidder, you will need to pay a deposit on the spot.
Arranging your finance in advance will also help you to set a limit for bidding and give you an offer range for how high you can afford. It is smart to have your budget in mind before you raise the paddle and be firm on it, with a small percentage of wiggle room as it can be challenging to not get carried away in the excitement on auction day.
Attend open homes and decide on a property
You may find that when you are entering into the buying process, the first home you bid on won’t be the last. In a tighter market, there is higher competition for properties, and you may miss out the first, second or even third time.
Attend as many open homes as you need to during the hunt for your new home and it is important to keep in mind that each auction may not be the last. When you have found a property or even properties that are suitable, gather all the information from the sales agents that you need to make an informed decision to take with you to the auction.
Be prepared on auction day
On the day of the auction, there can often be several bidders all vying for the property. You will need to pre-register prior to the auction and provide your ID and details to the selling agent. They will provide you with a paddle to raise when you want to put in a bid against the property.
When the auctioneer calls for bids, keep an eye on your competition to scope out how many other bidders are in the race as well as their movements and body language.
Be confident and strong with your bidding and keep those guidelines around your budget and finance approval in mind when you are raising that paddle.