Buying a home at an auction can be as daunting as it is thrilling, it’s hard not to get swept away in the atmosphere and stay within your budget. We have compiled a few tips to help stay calm and maximise your chances of securing the property you want at the right price.
Tip 1. Believe nothing and check everything
Property auctions tend to move quite fast, and people who have not experienced an auction before often get lost in the moment. If the property you decided to buy is selling at auction you should invest some time in attending other property auctions to observe the process and get a feel for the speed at which they generally move.
It also pays to speak to a few agents and get a comparison between the quoted price and the actual auction price this will give you an indication of what to expect at auction day.
Tip 2. Undertake pre- purchase inspections
Organise a building and a pest inspection report before auction day. If the report identifies faults ask the agent if you can take a builder for an inspection and get an estimation of repair costs.
Tip 3. Ask your solicitor to review the contract of sale
Contract for sale by auction are complex and don’t have the benefit of a cooling off period. Do not bid on a property without having the all clear from your solicitor, if you’re the highest bidder at an auction you don’t want to have any nasty surprises.
Tip 4. Arrange loan pre-approval
Bidding at an auction without the certainty of a loan could be a very risky move. Before you decide to bid at an auction secure a loan pre-approval, this will set the limit to your bidding as well as give you the confidence that you have your finance secured to fulfil the contract.
Tip 5. Know the limit and stick to it
Your loan pre-approval should give you a good idea of how much you can afford to pay for a property, however you should only pay what you think the property is worth based on sales of similar home in the area. Paying more than the average value of similar properties in the area could mean you will have to wait longer for your property to grow in value.
Tip 6. Keep your budget secret
Letting the agent or the seller know your budget won’t work in your favour. This information can be used to ensure the property price reaches your limit even if that is above the average market value.
Looking to buy your dream home in the Sutherland Shire, perhaps Caringbah, Miranda, Gymea or surrounding suburbs? Give us a call we can organise your loan pre-approval and will provide you with property reports while house hunting to ensure you buy at the right price