10 Hot Tips For Buying At Auction.
Prior to Buying At Auction
- Tip # 1 : Use your research and budget to help you identify a ‘walk-away’ price. It’s in your interest to keep this a secret from the agent, so they don’t use this information to help the vendor set their reserve.
- Tip # 2 : Have your finance already in place and attend the auction ready to write a deposit cheque.
- Tip # 3 : Attend some auctions beforehand to experience the atmosphere and observe different bidding strategies.
- Tip # 4 : Organise any amendments to the contract, such as a longer settlement period, prior to the auction. Talk to the agent and get agreement from the vendors in writing.
- On the day of Buying At Auction
Tip # 5 : If you’re going to start the bidding, start low. - Tip # 6 : Project confidence – make the other bidders think you have no limit.
- Tip # 7 : Make your bids fast and assertive. Agonising over your next bid is a sign of weakness.
- Tip # 8 : Call out your offer in full (i.e. say “$350,000” instead of the increments, i.e “$5,000”).
- Tip # 9 : If it’s going to pass in, make sure you’re the highest bidder, as this usually allows first right to negotiate (whether this is a legal right or courtesy varies between states).
- Tip # 10 : Stick to your ‘walk-away’ price. It’s better to feel the short-lived disappointment of missing out on a property you love than the long-lasting remorse of paying too much.
Did you find this article about buying at auction helpful? Here are some other articles about finance, mortgage brokers and purchasing property that other readers have found helpful :
- How to Be The Winning Bidder At An Auction
- How To Buy At Auction. 14 Things You Need To Know.
- How to Choose a Mortgage Broker
- Ten Tips About Buying Real Estate That Will Save You Money
- The Best Financial Advice You Need To Buy Your First Home
- The 7 Vital Facts You Need to Know As a Buyer In a Multiple Offer Situation
