As a bidder, if you decide you are interested in a property selling under the hammer, let the agent know early. By alerting the agent, you will hear about any offers for the property before the auction.
Attending other auctions to get acquainted with the procedures is usually a sensible way to prepare for the big day. At the same time, don’t leave anything to chance and obtain a building and pest inspection report for the property you’re interested in buying.
Undertake some research legwork and have a sense of the potential value of the house or apartment. It is possible to compare property values in the area by monitoring the real estate portals, this website or by contacting your local Raine & Horne agent.
As part of your research, ensure you know when the home is available for inspection – and whatever you do, don’t forget to pencil the auction date into your diary.
On the day of the auction, make sure you have established your price limit, but be prepared to be flexible. Having some wriggle room on price will involve building in a buffer that matches your financial situation. Also having a preapproved home loan through a financial specialist such as Our Broker will prove useful.
If you're the successful bidder, you must pay your deposit on the spot. This will usually be at least 10% of the purchase price and you must be ready with the payment before the auction begins. Also, auctions differ from private sales as there is no cooling-off period once the vendor and buyer exchange contracts.
Whether you’re a buyer or a vendor considering an auction sale, for more information, contact your local Raine & Horne agent.