If you are thinking of attending a home auction, you may not know what to expect from the process. The reality is that if you have any hesitancy and don't know exactly when or how to bid, that can be the differentiating factor between you winning the auction or seeing someone else get the home instead.
With that in mind, you need to be fully prepared for this process so you can enter the event with a feeling of confidence and a clear game plan. The following tips will help you do just that:
1) Do your homework
It's important to enter into any home sale (regardless of whether it's an auction or private sale) with a deep knowledge of the property so you know exactly what you're getting into when you submit a bid, according to Ironfish. As such, you need to do a deep dive on not just the home itself, but the surrounding neighbourhood, schools in the area and more to make sure you're getting exactly what you expect.
2) Know your priorities
You may attend a number of home auctions and not necessarily know whether any one property is just right for you, unless you have sat down and sketched out exactly what you want from a home. What do you categorise as "must-have" features, what are "nice to have," and which would be a bit of a turn-off. When you know all that, it helps you set your bidding strategy.
3) Understand what the auction process is like
If you've never been to an auction before, you might not know what you're getting yourself into. Genworth explained that familiarising yourself with this process will give you more confidence. You may want to check out an auction for a home you're not interested in, or watch some videos online, to see what a real-life auction is truly like.
4) Go in with financing approved
It's always a good idea to get your home purchase financing pre-approved before you attempt to bid on a home (via auction or private sale) because you will know the absolute maximum amount you can afford. You should still bid a bit under this level, but if it's your dream home, you can feel comfortable going up to that predetermined limit.
5) Talk to other bidders
Once you arrive at the auction, you will likely be waiting with a group of other would-be bidders and that's a good time to take the temperature of all involved, Smart Property Investment advised. You may find that competition for this particular home is expected to be heated; how will that affect your bidding strategy? On the other hand, you might learn that other bidders aren't necessarily excited to sell; is there a good reason why that's the case?
6) Work with professionals
Whether you've been through 10 auctions before or none at all, working with experienced real estate professionals will help you get a wide view of the situation and better understand how you should approach the event. A buyer's agent can provide you with a lot of information about the property, pricing, bidding strategies and more.
At Ray White Surfers Paradise, we have helped to guide countless buyers through auctions over the years and would love to be able to do the same for you. Get in touch with us today so we can start the process of preparing you to approach all auctions with confidence. That extra level of preparation might be just what you need to separate yourself from the other bidders.