Auctions are an effective tool for selling residential properties, especially since national auction clearance rates remain high. If you plan to purchase your home through an auction, prepare yourself by following our how-to list. Auctions can be stressful and nerve-wracking, but they’re also the entryway into a new chapter of your life.
Do some research
Researching the market around your chosen residential property is important. It reveals what factors may affect the long-term value of the property. Begin your research by examining other properties in the area to determine the local market’s buying environment. Set yourself the goal of gaining a detailed understanding of what properties are available, and what properties have been sold recently.
It is a good idea to watch other auctions in the area before the auction day. This will show you how auctions are conducted, and give you an idea of who else may attend the auction. Speak to one of our representatives about what auctions are coming up and make sure you come along. You don’t need an invite but we’d love to hear from you.
Meet your agent
Meet with your agents several days in advance to finalise details and go through your plan for the auction day. In some cases, your agent will want to meet with you an hour before the auction is scheduled to begin. This short meeting is an opportunity for you to confirm a few details about the auction. During this time, check the following with your agent:
- Number of visitors expected
- Amount the bid will be raised after each bid is beaten
- How your agent intends to communicate with you during the auction
- Number of vendor bids that will be used
Develop a plan
Preparation is the key to your success. By doing your research and determining your budget, you can identify when it is time to walk away from the bid. Ultimately if this is your dream home it is worth to you something different to that of your competing buyers. You can’t be wrong at an auction; you either buy or don’t. But if you truly want the property, don’t be afraid to put it all on the line. Don’t be afraid to make a bid first. The first bid sets the tone and lets your competition know you mean business. Keep your bids strong and high; this again lets your competition know you’re in business and not going out without a fight.
Three things are a must: finance, contract and inspections. Make sure that your finances are in check and you can pay what you bid for, and ensure you attend the auction prepared and ready to make a deposit should you win. Have your contract reviewed, and ensure that any changes you require are agreed to by you and the solicitors prior to bidding. Finally, at your discretion, ensure you have completed any relevant searches or inspections on the property including a strata or pest and building report.
If you get stuck and are unsure what to do in order to proceed, simply ask one of our friendly representatives and we’ll be sure to help.