Whether you’re a first home buyer or a property pro, buying a house at auction can be a little daunting. There’s so many benefits when you’re buying at auction so don’t let the spectators and heightened emotion slow you down. We’ve got some tips to help you feel confident buying a home under the hammer.
Why buy at auction?
Buying at auction is one of the most transparent ways you can buy a home in Queensland. You’ll know everything, but the purchase price, before you even place a bid. When you’re bidding with others you’re more likely to pay a fair price as you have a guide on where others see the home’s worth. Finally, as auctions are open only to cash-buyers – you’re removing competition and can have a crack at securing your dream home before others.
By attending auctions and researching homes online you’ll be able to easily see the market value of the home. It’s useful to attend auctions by the same real-estate agent and auctioneer so you can meet them before the big day. A home is one of the biggest purchasers you’ll ever make and doing your research on suburbs, similar homes, and real-estate agents can help you to feel calm and confident. Visit realestate.com.au to get suburb profiles and info on recent sales.
Prior to bidding, get an idea of how much you think the home’s worth. It’s important to come up with a firm budget in your mind prior to attending the auction. Knowing your budget also helps you make clear decisions, without being caught up in the emotion of an auction.
It’s auction day! Try to arrive early and secure a spot. You want to be seen easily, but perhaps not front and centre if this is your first auction. If it’s a hot day and you’re outside, find some shade. Auctions can be long or short, depending on buyer interest.
Bid early and stay in the game
Don’t be scared to start the bidding process. Bidding early gives you a slight advantage, rather than jumping in right at the end. Try to continue bidding as long as your budget allows. If you’re not at your maximum budget, but the bidding has slowed, try to have the last bid when the house gets passed in so you’ll have the first opportunity to negotiate.
Everyone at the auction is in the same situation as you. If you’re a first-time buyer you have as much chance of buying the property as anyone else, so try to be calm and confident.
Buyers’ agents work with buyers, just like you, to help you learn the auction process. They’ll even bid on your behalf if you don’t feel confident doing so.
Congratulations, you’ve got your dream home! Now you’ll be asked to pay 10% of the purchase price and sign the contract. The terms and conditions have already been set out so you can feel confident you won’t be surprised with any facts after the hammer falls.