Auctions – they don’t have to be scary!

You’ve found the property you want to buy – but it’s going to auction. There are some key things to be aware of, both before and on auction day.

1.     You must have pre-approval for your finance before you go to auction. You don’t want to fall in love with a property and then realise you aren’t able to access the funds to purchase. With a predicted tightening of lending imminent, it’s even more important to get in early and ensure your finance is sorted in advance. Here’s where we can help!

2.     Do your research. Visit other properties in the same area and with comparable features. Make sure you know what properties in the area have sold for in the last 12 months. Check out to see estimates of what the home you are looking at is worth. You are able to request a building inspection and you are also able to request a sale contract from the agent for your home loan specialist to look over and advise you on. It’s even a good idea to head along to auctions in the area being conducted by the same agent to get a feel for the style of the auctioneer. All of this helps with your feeling of confidence when you head into the property you are looking at.

3.     Go in strong! Know your limits and be prepared to stick to them. Bid confidently – even if the price is heading close to your limit – to give the impression to other bidders that you are happy to keep going and discourage them from doing the same.