Research the area you are looking to buy in, look at recent sold results, attend open for inspections and auctions to help you set a realistic budget.
Finance, Pre-Approval & Deposit
Buying at auction means you are buying unconditionally. Ensure you have your finances and loan pre-approval ready. Be prepared with a deposit (usually 10%) as you will be expected to put down a deposit if you’re successful at the auction.
Have your conveyancer/solicitor look at the sec32 so that you’re properly informed.
Building & Pest Inspection
This is not mandatory, however if you would feel more comfortable knowing the house is structurally sound and pest free, ensure you have someone qualified look through the property before auction day.
Raise your hand and in a loud clear voice, let the auctioneer know your intention. If you are nervous, choose someone you can trust to bid on your behalf or alternatively consider a buyer’s agent.
Property Passed In: Be the highest bidder
If you are the highest bidder at an auction that has passed in, you have the first chance to negotiate with the seller immediately after the auction. So, if you love the property and it’s still within your budget, ensure you are the highest bidder to give yourself the first and exclusive chance to negotiate.
Know your limit
If the bidding surpasses your budget significantly, don’t get carried away. If it’s a question of $1,000 – $10-15,000 and you still feel you can do it, then go for it.
How to Bid
Bid immediately and strongly after being outbid, give other bidders the impression you have an endless budget. Do not hesitate as that gives the impression to your opposition that you are nearing your limit, which keeps them hanging on.
If you have agreed to purchase the property you will be required to sign the contracts and sec32 as well pay a 10% deposit that will be held in trust. Remember, that buying at Auction means an unconditional sale, so ensure your finances and any inspections have been already been taken care of.