Auctions are becoming an increasingly popular method for selling homes, but the whole process can seem intimidating and scary to the first time bidder. Here’s a little of what you need to know to make your first time Auction experience less overwhelming.
Before you attend the Auction it’s a good idea to do your research. Being well prepared will always work in your favour on the day. Decide where you would like to buy and research the area well. Find out what the average selling price is and use this as a guide to come up with a reasonable bidding price. Visit as many similar properties as you can and get a feel for what’s on offer.
Once you have decided which property you would like to bid on, you need to let the selling agent know that you are interested. They will then provide you with a “Contract of Sale”. Have a read of it yourself as well as getting the contract looked at by a professional to make sure everything is as it should be. It’s important that you understand the the conditions of sale, settlement terms etc.
Your next step is to have the relevant inspections done. It is necessary to have building and pest inspections done before Auction Day. Auction sales are binding on the day. There are no cooling off periods, so inspections must be completed to avoid disappointment or nasty surprises.
Now it’s time to make sure your finances are in order. Visit your bank and find out how much you can borrow so you can set your bidding limit before Auction day. Don’t forget to include extra costs such as stamp duty etc when considering your budget.
The day of the Auction has arrived! Make sure you find yourself a spot where the auctioneer can see you. Bid clearly and confidently. Don’t get carried away and remain under control, making sure you don’t bid more than you can afford. If you feel like the auction is moving too fast for you, try bidding at a lower rate. Once the bids reach an offer the seller is happy with, the Auctioneer with announce that the property is “on the market!”. If the reserve price is not met, the highest bidder on the day is then offered the opportunity to negotiate with the seller.
REMEMBER… if you are the highest bidder, you will be required to sign the contract of sale and pay your deposit immediately.
We have a number of properties coming up for Auction over the next few weeks. If you would like to view these properties or discuss details with us, please use the contact link at the top of our website. We’re always happy to help.