If you’re considering buying your new house at auction, here are five tips to help you prepare for the experience.
- Be aware of what the property is worth and what you’re prepared to pay. Research recent sales in the area you want to buy. And take the time to get a feel for the property and the neighbourhood in general, by talking with real estate agents and neighbours about the home. Armed with this information, you can confidently set your limit for the house auction. Never bid above this price.
- Attend a number of house auctions before your auction to get an idea of how it all works. Observe how auctioneers, and both buyers and sellers, behave on the day. This can be a very enlightening, and often amusing, experience.
- Have the property and contract thoroughly checked before the house auction day as auction contracts are unconditional and are not subject to finance or inspection, after the fact. On that note, organise your finance so that you are able to proceed with the sale if you are the successful bidder.
- Don’t be afraid to ask for help. Buying a house is a pretty big decision and can be an angst ridden journey, so consider engaging a buyer’s agent to bid on your behalf at the auction. They won’t get carried away and let their heart rule their head.
- In property transactions everything is negotiable, but when the hammer falls, it’s a done deal. If you’d like to alter the terms of the contract, make sure you do it before the auction. It’s also a clever way to gauge the level of interest in the property - if the vendor refuses your requests, it could mean that they’re confident that there is strong interest in the property going to auction.