Property auctions are exciting and high-stakes events where preparation is key. Here are 10 essential steps to ensure you’re ready to bid confidently and successfully on auction day.
1. Assess Your Financial Capacity
Before you even think about bidding, check your financial capacity. Consult with your mortgage advisor to understand your borrowing limits and get pre-approved for a loan. A pre-approval is a must in this case!
2. Review the Sale Contract
Have a property lawyer review the contract of sale well before the auction. They can identify any terms that might need negotiation and protect your interests.
3. Conduct Thorough Inspections
Arrange for building and pest inspections to be completed before the auction. This ensures you are fully aware of the property’s condition and any potential issues.
4. Research the Neighbourhood
Investigate the area around the property. Visit at different times of the day and research online to understand the neighbourhood’s noise levels, traffic, and overall vibe.
5. Register to Bid
Register with the selling agent before the auction day. You’ll need to provide identification, such as a driver’s license or passport, to receive a bidder’s number.
6. Attend Other Auctions
Familiarize yourself with the auction process by attending several auctions as a spectator. This helps you understand the dynamics and strategies used in bidding.
7. Set a Bidding Limit
Determine your maximum bid limit before the auction and stick to it. Avoid getting caught up in the excitement and bidding more than you can afford.
8. Remove Emotion from the Process
Bidding emotionally can lead to overspending. Stay objective and stick to your pre-set limit to avoid financial regret.
9. Consider Hiring a Buyer’s Agent
A buyer’s agent can bid on your behalf, bringing experience and a level head to the process. This can be particularly useful if you’re emotionally attached to the property.
10. Have a Payment Plan Ready
Ensure you have the deposit (usually 10% of the purchase price) ready to pay immediately after the auction if you win. Check acceptable payment methods with the selling agent in advance.
Conclusion
Preparation is the key to auction success. By following these steps, you’ll be well-equipped to bid confidently and secure your dream property at the right price.
For more detailed advice or assistance, feel free to connect with me on LinkedIn. Let’s make your auction experience a successful one!