Buying at auction? 3 tips to help you prepare

You’ve been looking at the real estate market, and you’ve found your dream home. And it’s going to auction! If you are prepared for the auction, it can be exciting, and if you succeed on the day, you will be walking away as a homeowner.

When planning to bid at an auction, it is important to come prepared. In this video, Joanne Danckwardt of One Agency JD property provides three tips to help you prepare for the auction and ultimately achieve success on the day.

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Pre-Approval

To help you secure your new home purchase, prior to the auction day, ensure you have a home loan pre approval. This will put you in an ideal position to bid, as you will have your maximum limit established with your lender, and provide you with confidence. Most pre-approvals are only valid for around 90 days, so you should seek pre-approval when you are serious about buying. Don’t try to predict the market – if you are ready to buy, don’t delay.

Ensure you have completed any pest and building inspections beforehand. If you are the successful bidder of the auction, the sale is final. There are no opportunities to complete these inspections afterwards, and you would rather know beforehand if the property has any concerns, or if the pest and building report is not perfect.

You should also seek legal advice regarding the Contract of Sale and its Terms & Conditions.

Deposit

Ensure you have funds available for your deposit. If you are the successful bidder, you will need to pay a deposit on the day. This is usually 10% of the purchase price, but you can negotiate beforehand a lower amount of 5%. If you will be using a deposit bond, ensure that this has been negotiated and is acceptable to the seller before the auction.

Registration

If you are wanting to bid at a real estate auction in NSW, legislation requires that you must register your details, providing your name and photo identification to the auctioneer prior to the auction in order for bids to be accepted. You can do this in person on the day of the auction, or you can also pre-register with the agent beforehand. Upon registration you will receive a bidder’s card, which must be used throughout the auction.

If you do have to register on the day, it is important to arrive at the auction a little bit early, to give yourself time to complete the registration process, prior to the auction. Double check that you have the date and time right.

If you are looking for a property to buy, request to be added to our open home alert 

YES, ADD ME TO YOUR OPEN HOME ALERT

I hope that helps with your planning on what you should be doing to prepare for an auction when planning on buying property. Keep an eye on our upcoming auctions and we welcome you to attend any of them.

If you feel you could benefit from our experience with buying and selling, we’d love to hear from you. Simply reach out.  If you have any questions, or you know of anyone who may benefit from our real estate services, we’d love to chat. Our number is 0426 264 771. We look forward to talking to you soon.