Purchasing a property at auction can be an incredibly stressful process for many. With all of the action and excitement on auction day, many bidders end up exceeding their budget and can often end up paying too much for a property.
In order to avoid common pitfalls, consider these simple tips:
- Work out what the property is worth and what you’re prepared to pay for it.
- Once you have determined what the property is worth and what your budget is, select a maximum bid amount and stick to it at all costs.
- Before you buy at auction, learn the auction process - go to several auctions as an observer, watch the auctioneer, watch the bidders and understand how the process works.
- Prior to auction day, inspect the property - complete building and pest inspections, title searches, property valuations and conduct your own research on the property and the suburb.
- Before the auction, ensure that your finances are arranged and that you have the deposit funds available if your bid is accepted.
- When bidding, keep upping your current bid by the smallest increment allowed until either the competition drops out or until you reach your limit. If the auction finishes before you reach your limit, you secure the property at the lowest possible price for you.
- If you are overly nervous or not confident, consider asking a friend or family member to do the bidding for you. Alternatively, consider hiring a buyer’s agent to handle the bidding on your behalf.