Buying at Auction? Here’s what you need to know.

Every Saturday morning, prospective home buyers across the country wake up, grab a coffee and set out to take part in one of the most exciting parts of real estate… Auctions. Selling via auction is one of Australia's most popular sales methods, and with auctions making up a significant percentage of sales not just in Sydney, but across the country, being well prepared can help you to manage the highs, lows, stress, and excitement that comes with purchasing a home at auction.

Get Auction Savvy

Before you head to your dream home and register to bid, make sure you have attended a few different auctions in the suburb/s you’re hoping to buy in. Try to attend auctions that are run by different agents and various auctioneers. This will give you an understanding of a couple of key elements:

1. What the competition and demand in the area is like for the types of homes you’re interested in.
2. The rhythm and flow of an auction and how an individual’s changes in bidding increments and body language can speak to their current position.

Get YOUR House In Order

And no, we don’t mean the place you’re currently living. Getting your house in order means making sure you have ticked all the boxes you need to before auction day. Make sure you have spoken with your bank/broker prior and secured pre-approval to give clarity on what your budget and limit is on auction day. Even the small things like knowing what your daily bank transfer limit is in the event that you are successful and need to transfer a deposit when the hammer comes down can help make the process much smoother. 

Ensure you’re across the comparable sales in the area and make sure you have had a lawyer review the contract of sale and any other documentation such as a building and pest or strata report. All of these things will help you personally determine what value you place on the home and decide on a limit for auction day.

Succeeding When It Counts

There is nothing more crucial to success on auction day than coming in with a clear plan and strategy. Know your limits and stick to them. Auctions can be emotional and the last thing you want is to get carried away. Take the information you learned from attending previous auctions, your understanding of what increments to bid and when to bid, and how the auctioneer manages the process and use it to your advantage.

If the hammer comes down and you have the highest bid… Congratulations! Enjoy the excitement of purchasing your property. If you were an underbidder, make sure you speak to the agent and/or auctioneer when appropriate to discuss what your options might be moving forward - you never know what is going to come up next on the market. 

For more auction and property purchasing information, get in touch with our team via the details below.