6 key steps to take before a Gold Coast auction
There's nothing quite like buying property at auction. The tension of escalating bids, the rush of placing one yourself, and of course the fever pitch that comes with people competing to buy the home of their dreams. With so many beautiful homes around the Gold Coast, there's no shortage of auctions where you can find something truly magnificent.
However, if you go in unprepared then it can be somewhat of a rude awakening that leaves you feeling out of your depth. If you're looking at attending, bidding or selling at The Event 2017, you're going to want every bit of advice you can get. That's why we've prepared these tips to help you bid (and hopefully win) in style.
1) Study the market
How can you make an educated guess at the reserve price, or know how much you should secure with a home loan pre-approval? You research the market you're buying in.
For example, auction clearance rates show you the level of competition for local real estate. Sale price data gives you a ballpark figure of what you might pay, and comparing these to values can even show you if there are good deals around the Gold Coast property market.
Real estate agents are not allowed to disclose reserve prices until they are reached on the day, so it is your job to dig a little deeper.
2) Schedule an inspection
Whether you are selling or buying a home, an inspection is an absolute must. It means that you will be prepared to answer any questions should they arise during an open home. Give yourself the biggest knowledge pool to swim in because it will make future decisions a lot less stressful.
If you are a buyer, then you know that an inspection should be absolutely mandatory before you sign anything. Don't let your excitement and enthusiasm run away on you.
3) Know when to stop
Your mindset is so important when it comes to being successful at an auction.
You will be juggling the stress of bidding, the excitement of potentially buying a property and the mental gymnastics of how close to your bidding limit you are, just to begin with. Factor in the competitive heat of the moment, the urgency of an auctioneer and that "just a little higher" mentality that creeps in, and it's easy to get carried away and over-bid.
However, you have to know when to stop. The consequence to not sticking to your budget could be incredibly stressful and it is not worth the worry. Be patient and take breaks if you feel yourself getting carried away. An agent may also be able to bid on your behalf.
4) Make sure to register
You can't bid if you're not registered to bid – it's as simple as that. Get this done ahead of the auction day if you can – while it's a straightforward step for seasoned professionals, in all of the excitement it's an easy step to forget.
When you register, make sure to ask about any late changes to the contract as well – there could be deal breakers that mean registering isn't even worth it on the day.
5) Be financially prepared
If you want to bid at a Gold Coast auction, you should get home loan pre-approval. With no cooling-off period, you are locked into the property if you win the bidding – you don't want to then get rejected for a mortgage and be unable to follow through, as the fees can be significant.
Pre-approval also gives you an upper bidding limit, the point at which you should stop.
6) Have the right mindset
Confidence is key for both the buyer and seller at auction. You need to walk in with your head up high, confident and with every intention to throw your hat in the ring. It is not necessarily about intimidating the other buyers, it is about being informed and knowing exactly what you want.
Auction season is hot on the agenda for the Gold Coast and if you want to get in the game, talk to the team at Ray White Surfers Paradise.