Auctions are becoming increasingly common as the property market heats up in cities around the country. All of that competition can make bidding at a property auction an intimidating experience, however, you can reduce your trepidation by becoming familiar with the auction process.
Prepare as much as you can beforehand – Before you bid at an auction you should take some time getting all of your ducks in a row so you’re as prepared as you can be for auction day.
First of all, ensure you read all contracts, have secured finance, and get any building and pest inspections done if you’re serious about buying. You should also talk to the selling agent and let them know that you’re interested in the property in question, they can offer advice and help step you through the auction process. If you haven’t been to an auction before, it’s also recommended that you visit other auctions to see how they work and to get a feel for the local market.
Know your price – Once you have done all of your research and you’re confident that you want to bid on a property, you need to ensure you have your finances in order. Work out how much you can spend on the property and stick to your price. Don’t let yourself get carried away with bidding and spend more than you can afford. Keep in mind that when you bid at auction it’s unconditional so you need to have all of your finances in order beforehand. If you’re not confident in bidding you can ask a friend or family member to bid on your behalf or you can engage a professional buyer’s agent.
Realise that the auction might not go your way – You might end up bidding at a few auctions before you’re finally the lucky one at the end holding the keys. There might be other buyers willing to go much higher than you are so try not to get disheartened if you miss out on a property. If you want to do your best not to miss out, then make sure you put your best foot forward and make your strongest offer on the day. By being prepared and confident in what you have to offer on auction day, hopefully you’ll stand out from the crowd and be the winning bidder on the day.