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What should you do before an auction? Tips to help buyers succeed

By Andrew Bell

An increasingly popular option for buying Surfers Paradise property is the growing trend of auctioning, which has a number of benefits for both vendors and buyers alike. However, properly preparing for the experience is the only way to increase your chances of successfully securing real estate this way. 

Taking this to heart, here are some of the important things to take care of before approaching the market. 

Do your research into the market

Purchasing property is one of the biggest investments you'll ever make in your life. Not only is this a lot of money to be spending and paying back over a long period of time, but your home will also become your main asset. Therefore, you'll want to ensure you purchase property in the right location in order to continue reaping the rewards of a well-bought asset for years into the future. Just like buying a car or a large television, researching the options and coming to the right conclusion is essential. 

When it comes to searching for the right home, the best place to start is to look up the various statistics and pieces of information freely available online. You'll naturally want to find a location that has a low median sale price while showing signs of future improvements through infrastructure projects and general capital gains. It's possible to see things like median rental yields, how much homes are selling for and a number of other details about the market. 

Seek out a home loan pre-approval

One thing to remember about auctions is the sheer speed of the transaction. In fact, in the event that you're successful, it's often the case that you're expected to sign the contract and finalise the deal as soon as the auction is finished. 

Therefore, you need to take steps towards being financially prepared with your mortgage product and down payment in check. This is where a home loan pre-approval will be a lifesaver. Speaking with a financial lender gives you the chance to chat with them about your future monetary needs, which often means you can often get these funds put aside for you when you need them. This is a pre-approval and can be a weight off your shoulders in the long run. 

Conduct all necessary inspections prior to auction

With the finality of the hammer fall, this means you won't have an opportunity following the sales conclusion to take care of things like property inspections. There is no cooling down period, so ensuring you're in the right position to go ahead with the sale without any qualms is important.

This means organising to have your inspections done before the auction date. Getting a pest and strata inspection means you can approach the day with confidence, knowing full well the state that you're getting the home in – without any nasty surprises or hidden expensive repairs to be taken care of. 

Take note of any unexpected costs

Be warned: There are multiple hidden expenses that aren't always clear to newcomers to the property game. Things like stamp duty, mortgage insurance, moving costs and government expenses can be unexpected, so take the time to discuss this with your financial provider in order to be completely prepared and ready to meet all the expenses necessary when you successfully by a home. 

If you're interested in buying real estate in Surfers Paradise, keep an eye out for The Event coming up early next year. An annual phenomenon in the Gold Coast, The Event brings together buyers, vendors and property professionals to help individuals achieve the real estate results they want for their local property. Now could be the perfect time to start preparing for the next occasion, so get in touch with a local real estate agent to begin discussing the options available to you. 

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