Have you ever considered buying at auction? For some people, it can be daunting. There’s a lot going on in the auction room, but it’s a simple process. The auctioneer is looking around for the highest bidder – if that’s you, and you meet the reserve price, you’ve bought a house. If it’s not, try again.
Buying a home on the Gold Coast is competitive, but heading to auction with a sound strategy can help you to stay ahead of the competition, even if they have more cash to splash. CoreLogic RP Data from November 6 shows the first weekend of the month was a poor one for sellers at auction on the Gold Coast. Only 30.8 per cent of the 26 listed properties sold. While it shows the auction floor wasn’t very active in terms of reaching the reserve, it also means that sellers didn’t receive suitable offers after the home had been taken off the block.
With the right strategy at auction, you could buy a Gold Coast home for a great price. Here’s what you need to know:
Make sure you turn up on auction day armed with knowledge about the home you want to buy. Understand the area and how much other homes have been sold for recently so you have a benchmark when you make a bid. You don’t want to bid twice what the property is worth because you’re unprepared.
From the moment you walk into the auction room, be confident. Other people in the room are potential competitors, and your attitude could put them off bidding against you in the late stages of an auction.
At the same time, read the room and look out for people who might be uncomfortable and unsure of themselves. If they’re bidding against you, put the pressure on them to drop out of the race by reacting quickly with counter-offers. Unfortunately, experienced auction buyers will sometimes beat you to the punch, but at least you’ll have learned the process and know what to expect next time a house in Sanctuary Cove you want comes up.
If a home doesn’t sell, the auctioneer will move on quickly, sometimes without you even realising. That doesn’t mean it’s completely off the table, only that the reserve price wasn’t reached. In this case, don’t be afraid to approach the seller and make a private offer.
With your knowledge of recent sales in the area and the size of the home, you’ll be able to offer something competitive and realistic, potentially still below the reserve price, to at least make the seller consider selling on the day.
Buying at auction can be difficult if you don’t go into the situation prepared. With the right knowledge, however, you could end up with a bargain. For more information about buying a home on the Gold Coast, get in touch with the team at Ray White Surfers Paradise.