More and more properties are going up for auction. It can be a daunting experience no matter how seasoned a property buyer you are.
Using a few simple strategies to get auction-ready may be the difference between bidding successfully and missing out on your dream home.
- Be pre-approved: contact your mortgage broker to get a figure that the bank is prepared to lend you based on your financial position. This is a formal letter from the lender. Beware of online forms, they are only an indication that you may qualify to borrow up to a certain amount. Remember, there is a difference between what you can borrow and what you can comfortably afford.
- Do your research: get on the property websites, look at what's sold, talk to real estate agents to get a good understanding of a reasonable sale price. Get a market report on the suburb you are looking to buy in from your broker to help you identify values and recent sales in the area. Talk to your broker about the auction process and what to expect.
- Know your limit and 'walk-away' point: Emotion is part of the buying process, which is amplified during an auction. Before you start to bid, you need to know your 'walk-away point'. Go to a few auctions beforehand to understand what goes on. On auction day, know what you are prepared to spend, and don't forget it! Know the terms and conditions of the contract, eg. settlement terms. Make sure you have your deposit ready.
At Scott Partridge Mortgage Choice we provide expert mortgage advice, options and guidance allowing you to make an informed decision.
If you would like to learn more about your home loan options, contact us on 0411 505 536, email: firstname.lastname@example.org or click HERE to arrange a meeting.
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