Found your dream home or investment property and it’s going to auction? Auctions can be a scary prospect. They are often emotionally charged events and for those who have never bid at an auction they can be an overwhelming experience.
The purpose of an auction is to gather as many bidders as possible and have them compete to purchase the property. A well-run auction should squeeze every last dollar out of the buyers and achieve the highest price for the seller.
Property Pursuit has purchased many properties for good prices at auction. As a Buyer’s Agent our job is to circumvent the emotional aspect of the auction process by controlling the bidding and putting our clients in the best position to buy the property.
At Property Pursuit we understand that bidding at an auction can be a daunting experience. However, if you are going it alone, here are some tips to help guide you through the process.
In Queensland it’s unlawful for an agent to give any indication of price or reserve. To work out what a property is worth Property Pursuit would conduct a comparable market analysis. You can determine what a property is worth by looking at the sale price of comparable properties that have sold in the past 6 months. This information will help you to set your limit.
- Conduct research including: Flood report, check the zoning of the property and surrounding properties and check to see if any major developments are coming up in the immediate area.
- Engage a licensed building and pest inspector.
- Speak to your bank – they may conduct a pre-purchase valuation.
- Speak to your solicitor to review the contract and conduct searches, check that all structures are certified.
- Set your limit based on recent comparable sales and your financial capacity.
- Familiarise yourself by attending some auction properties in your preferred location to observe how they work. This will make you more comfortable when it comes time to bid for your dream home or investment property.
- Be an active participant in the auction. Property Pursuit has purchased many properties at auction for far less than what our clients were prepared to spend because other people refused to bid!
- Don’t let the agents or the auctioneer pressure you into making a bid. You can be in control.
- Be confident but not aggressive. At Property Pursuit we have witnessed owners who refuse to sell to buyers on the basis that they were offended by the aggressive nature of their auction behaviour.
Most important thing is to be prepared and be confident with your bids.
Want to know more? Click Here to find out more about how we can help you. Or call us or send an email to receive more information and a quote.
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To talk about your own plans, contact one of our passionate Property Pursuit Buyers’ Agents.