One way of buying a property in Australia is through an auction. With this option, the buyer has an opportunity to provide bids according to his or her budget.
But bidding at property auctions requires certain skills and strategy. It is best that buyers come prepared and armed with a plan to help them succeed in buying their dream home.
We share here tips you can use to prepare and successfully bid at a property auction.
Do Your Research
Before taking part in an auction where you intend to purchase a property, make sure that you do your research first. Experts recommend to attend as many auctions as possible, learn about the local market and analyze recent property sales. These steps will be helpful in knowing the sold prices in your preferred area.
Review Contract in Advance
Properties put on auction can be sold prior to the big day. As such, it is possible to negotiate with the real estate agent if you are truly interested in a property. Make sure to thoroughly read the contract of sale and ask all your questions ahead of the auction day.
Prepare Your Budget
Beforehand, set a pre-determined limit on your bidding. This should be done while you are still calm and can decide on a realistic amount.
The trick is to come up with an uneven number instead of a whole number. As an example, you can set a limit of $404,000 or $536,000. If you do this, you have an edge over other bidders who tend to give numbers that have been rounded off.
Stay in Front
The best position when attending an auction is to stand in front. This way, you have a good view of the bidders and the auctioneer and are letting them know that you are prepared and confident.
Do greet and address the real estate agents and the auctioneer by their name. This act signals that you are serious in your participation.
Give a Strong First Bid
As soon as the auction starts, get involved right away. You can give the first bid and make it a strong bid. This will establish your presence and exert your influence during the course of the auction.
Also, make sure to say your bids in the full amount. Call out your bid clearly and with confidence so other bidders know that you are serious and willing to pay the right price.
Keep an eye for the next set of auction tips I’ll be sharing with you in the coming week.
Looking to buy in Melbourne and sick of missing out at auction? Talk to me about how I can help you buy your new home faster, for less. Call for a free consultation at 03 9686 2288.
By Wendy Chamberlain
Copyright 2015 | All Rights Reserved
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With a passion for all things real estate spanning 18 years, Wendy loves that her role as a
