First-time home buyers might find it difficult to bid at an auction especially if you do not have any idea about what usually happens out there.
Here are some of the best tips to help you before the auction starts and what to do during such a highly intimidating environment.
Before the auction day, have your building and pest inspection completed, have your finance sorted out well, and have your solicitor prepare contracts. Inform that team of people that you’re going to auction, inform them of the property style, and be really ready to go ahead of the auction with that dream team.
Communication with an agent is really important. It’s all about making sure that the terms and conditions of the property auction are clear. Is a standard 5% or 10% deposit required? How many days are required to settle the full payment?
For my clients, we prefer to have a pre-arranged $20,000 fixed deposit amount, payable within three business days after contracts are exchanged. Also, as opposed to having a 30-day settlement, we wanted a particular date as agreed by both parties.
Not a lot of people know you can negotiate the terms and conditions, but you definitely can. You can definitely discuss them with the agent but make sure you confirm it in writing prior to the day.
When picking out something to wear on auction day, opt for something that’s smart and can make you feel confident. You don’t need to wear a suit, but nor should you be wearing no shoes and footy shorts. Being properly dressed and well positioned in the audience makes people know that you’re a legitimate buyer. A good impression is really important.
Getting on site early gives you a step up on the competition. Make sure you register and check out the number of people eyeing for the same property. Assess your competitors by initiating small talks and hide your bidder’s registration form so they don’t know you’re bidding. In that way, you can observe them and come up with a strategy before bidding starts.
At the end of the day, all of those little things can help you become more competitive in the auction environment.
When the auction starts, prepare for an adrenaline rush! You’ll get nervous yet excited at the same time. Property auctions can be intimidating which is why it’s dangerous for first-timers. You have to be ready, you have to be confident. Make sure you’re standing in a location that’s really clearly visible to everyone in the audience, especially the auctioneer.
When you’re at an auction don’t worry about anything else until it’s over. Ignore the negotiations, inspections and preparation for now – right now it’s about you and the auctioneer. Don’t get too caught up about bidding against other people, it’s you versus the seller. That’s how to succeed at an auction!
If you need help bidding at an auction to make sure you buy at the right price, we’d be happy to help! We can also make sure you bid on the RIGHT property (there’s nothing worse than a successful auction on a property that flops!). Whatever your situation – whether you’re investing or buying a home, we specialise in helping you find the right property at the right price. Just send us a message, or call today on (07) 3170 3760