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Buying at auction

If you’re looking into purchasing property in the near future, you could find yourself competing against other buyers in an auction. This can be daunting for newcomers to the market, but there are a number of ways to help make your experience fantastic.

Finance

Remember to organise your finances as soon as possible. Not only will this provide you with a budget, but it will also allow you to act quickly in the event that you are successful at auction.

Vendors and agents usually work towards finalising the sale the same day as the auction, so being prepared and ready to go with your finances can give you the upper hand – giving you the best chances to secure your dream home.

Get to know auctions

Familiarise yourself with the auction process to remove any of the initial shock that comes with the often heated environment. Head along to a few auctions before you commit to your own, in order to gain an understanding of the in’s and out’s of the sales process. This will help to ensure you are adequately prepared to bid with ease on auction day and get you closer to owning your own slice of real estate in Surfers Paradise.

How do auctions work?

If you are concerned about going to an auction or putting your property up at this selling venue, relax. It’s not possible for someone to scratch their nose and accidentally walk away a homeowner. However, there are a few procedures you need to be aware of if you are looking to buy or sell real estate at auction.

Advice for sellers:

  • Before your auction, make sure you and your real estate agent are in agreement about the reserve price. If it is met, then the sale is guaranteed.
  • You can also make vendor bids through your real estate agent, but it’s best to check the legal ramifications of this before auction day.

Tips for buyers:

  • Register with the auctioneer before the auction begins so you have an auction number and paddle.
  • Get a professional evaluation of the house done before the auction. If you are successful at auction, there is no ‘cooling-off’ period to rethink the purchase.
  • Do some research into house prices in the area and work out the maximum amount you are willing and able to pay. This will help you avoid getting caught up in the excitement of the auction and overbidding. Also, make sure you have the deposit ready.
  • Read the sale contract and be aware of the terms and conditions. Buyers cannot impose any new terms to the contract or change the seller’s conditions.

Extra advice for buyers:

Registering Your Interest

If after the inspection you are interested in purchasing the property, it is important to inform the agent as soon as possible.This will ensure you are notified should the property look like selling prior to the auction date. Whilst we cannot disclose the offers made by other buyers, you will be given the opportunity to submit your offer.

Preparing for Auction Day

Before you decide to bid on a property you should become familiar with not only the property but also the sales contract. You may also like to have a solicitor advise you about the contract details. If you would like any general information on the property, please do not hesitate to contact the marketing agent prior to the auction.

Bidding by Telephone

With many buyers unable to attend the auction itself, we offer you the opportunity to bid over the telephone. You must complete the appropriate form prior to the commencement of the auction. Please inform your marketing agent that this is your intention so that all the formalities are in place.

Authorised Bidding Representative

For many reasons, you may prefer to have a representative attend the auction and bid on your behalf. If this is the case, a written authority must be completed prior to the commencement of the auction. Please allow sufficient time to have this form to be completed.

Bidding with Confidence

The best policy is to offer your bids clearly and confidently, as this announces your intention to buy the property and ensures you are acknowledged as a buyer. Feel free to use verbal bids or clear signals such as a raised hand. If you are unfamiliar with bidding at auction, please speak to our marketing agents who will offer their assistance.

Setting your limit

Think carefully about the property and compare it with others recently sold in the area. You can then decide on the highest figure you are prepared to pay to own the property. To be sure of this figure ask yourself how you would feel if someone bought the property for just $1,000 more. This is the true value of the property. Remember, once a property is sold under the hammer you have missed your opportunity.

We can handle all the details at Ray White

At Ray White Surfers Paradise, we want all our customers to walk away happy. Whether you’re targeting a specific type of real estate, like Surfers Paradise property, or anything else on the Gold Coast that catches your eye, we want to help you land the place of your dreams.

Fortunately, we have a deep database of available properties, and it includes a little something for everyone. Get in touch with us today and ask how we can help you find the right real estate, be it via auction or any other route you choose.

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