Auctions can be an emotional and daunting experience that you need to be well prepared for prior to attending. Whether you are a first home buyer, up-grader or investment buyer these following tips will be useful for the day of auction.
An Auction is a public sale usually conducted by a Real Estate Agent which is advertised for a specific time, place and date and sold to the highest bidder. Open inspections are usually conducted weeks in advanced to gain as many buyers to attend on the day.
Make sure you have met with a mortgage broker; having your financial position assessed means you will know your limit. A pre-approval is the best way to go when biding at an Auction; this will give you confidence in purchasing.
Ask yourself the following questions:
- What are the recent house sales in the area?
- Is the house in good condition?
- What market are you buying in?
Attend Local Auctions
There is no harm in attending local auctions in your area to get an understanding of what happens on the day. Auctions can be exciting and it is good to listen closely to bidders and gain understanding of their bidding strategy.
Ask for a copy of the sale contract from the auctioneering agency and get your solicitor to peruse document ensuring it is in order. Make sure you understand the legal obligations you have should your bid be successful at auction.
If you’re not confident in bidding on the day, consider paying for a buyer’s agent. They are professional bidders, attending auctions on weekly bases. They have experience in how the process works and will achieve the best outcome for you on the day.
Day of Auction
- Make sure you have registered your bid
- Arrive at least 30 mins prior to auction
- Don’t be intimidated by other bidders, be confident
Any successful bid at auction is an unconditional/cash offer to purchase the property (no finance or pest & build clauses). Settlement will be within 30days unless vendor and agent have accepted different terms. You must have at least 10% deposit ready to be paid on the day also.
Mortgage Choice in Bundall, Gold Coast can help you prepare your finances and know your options prior to auction. Let Mortgage Choice in Bundall, Gold Coast help you, with over 25 lenders to choice from and over 300+ loan products.
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