December 2015 Market Update - Six tips to help you on auction day
Here are a few things you can do to not only calm your auction nerves, but put yourself in a good position to hopefully win big on the day.
It is important for you to carefully read the contract of sale pre-auction to make sure you understand your various legal obligations should you place the winning bid. Any amendments you would like to make to the contract need to be discussed and agreed upon by both parties before the auction commences.
If you are serious about a particular property you must get your finances in order. The reality is an auction sale is unconditional, so if you win on the day, you will be contractually obligated to find the funds needed to purchase the property.
As with anything practice makes perfect. As such, it would pay to attend several auctions before bidding to ensure you know the rules and exactly how the event runs. Knowing the difference between the reserve and a vendor’s bid is important and by attending some ‘dummy’ auctions you will find it easier to understand a lot of the basic rules.
It is critical you bring your cheque book with you on the day. If you win at auction you will be expected to pay the deposit immediately, so you should attend forearmed.
It is also critical that you know your limits. With property prices soaring, it is easy for a place to sell way above the reserve price. So before you get carried away in the excitement of auction day and outspend your means, set a maximum price limit.
Finally, while auctions can be a very intense emotional experience, it is important to stay calm and level headed throughout the process. Removing the emotions from an auction will help you to come out on top.