The auction process can be an overwhelming experience however, being prepared with a rock solid plan of attack will help you to come out a winner on the big day. Auction is Ray White’s preferred method of sale with an 86% success rate and when the market is strong and sellers are confident, it has proven to be the most efficient method to secure a premium price for your property. By following these five basic steps, you are well on the way to making your day at th auction a success.
1. Set a limit and stick to it
One of the most important auction tips is to keep your emotions in check. You have to remember that you are making a significant financial investment and with a price limit that you have set prior to auction day you will ensure you don’t over-extend yourself financially.
Try talking to other agents in regards to the marketed price on the property you are interested in. Research comparable properties in surrounding areas and educate yourself on where the property you are interested in should sit in the market. By doing this initial research you will know where you stand, be able to spot a bargain and it may even result in a new auction budget, higher or lower than you had originally planned.
3. Get Legal Advice
Whilst your agent will be acting in your best interest, it is always best to get some independant legal advice prior to the big day. This impartial advice can facilitate a smoother transaction, piece of mind and most importantly, you wont end up with a dud.
4. Preparation = Success
Don’t forget, the winning bid at an auction results in a binding contract and if you are the winning bidder, your finances must be in order before auction day. Investigating all of your finances in advance will result in a more strategic auction budget and price guide as well as cement your confidence when bidding. You will also need a written loan approval before the day of the auction and deposit which is usually 10 per cent of the purchase price.
5. Don’t fly blind
As a basic minimum it is essential that you attend auction in advance so you are aware of how the process works so that when you auction comes around, you aren’t flying blind. Familiarise yourself with strategies of bidders, the procedures, rules and regulations. Not only will this give you an idea of the auction process, it will allow you to gauge the difference between a properties advertised price and where the auction actually takes it in your current market