Buying at auction? 6 tips to help you prepare

So, you are ready to buy; you’ve been scouting the market, and have chosen your dream home.

And it’s going to auction.

Bidding at auction can be a daunting experience if you haven’t done it before. The majority of people who attend auctions report feeling less than confident about making a bid.

To help you prepare to bid on your dream home, we’ve put together some helpful tips.

Do your research

Before you bid, you need to know roughly what the property is worth. It’s easy to get caught up in the bidding frenzy, and pay more than you should.

Get to know the local property market. The selling agent should be able to tell you how much nearby properties have sold for.

Get to know the property itself. Does it have the number of bedrooms you need? What are the local facilities like? What condition is the property in? Arrange a building inspection if possible. Know the cost of repairs, if there are any. If you know what you are bidding on, you will feel more confident on auction day.

Get your finance approved

You want to know what your upper buying limit is on auction day, so make sure your finance is approved beforehand. You also need to pay the deposit on the day, so you will need to have the funds to do so. Speak to the selling agent before auction to find out how the deposit can be paid. Check in with your Mortgage Choice broker to ensure finances are in order.

Attend other auctions

Attending auctions without bidding is a good way to help settle your nerves when it comes time to bid on your dream property. You get to know how auctions are run. You also get a chance to observe strategies bidders and the auctioneer use. Make notes about the bidders’ body language and tone of voice. Successful bidders, for instance, generally speak confidently and appear assertive.

Organise paperwork

Run the buying contracts past your solicitor or conveyancer prior to auction. If there are amendments to be made, make sure you organise this well in advance. You will also need personal identification on auction day to register as a bidder, so make sure you have this organised.

Keep your cards close

Avoid revealing your walk-away price to the selling agent prior to auction. If other bidders know how high you are prepared to go, they may out-bid you, or push you over your walk-away price.

Having said that, make sure you let the agent know you are serious about the property, and intend to bid. You want to be kept in the loop if someone else has made an offer prior to auction day.

Keep a clear head

If you are sure this is the house for you, you know what you are prepared to pay and have done the legwork, you put yourself in a better position to place the winning bid. Go into the auction with a clear head to avoid getting overwhelmed.

And if you aren’t successful on auction day? It’s not the end of the world. It wasn’t meant to be, and your dream property is still out there.