The excitement and anticipation of an auction is probably the way most people imagine they will buy a property.
The idea of bidding at auction can be daunting or thrilling depending on the individual. Most likely it will be a little of both. Of course, the best way of approaching an auction is to take the emotion out of it, but that’s easier said than done.
Before you get hold of that paddle, it’s a good idea to do some field research. Attend as many auctions as possible to understand how they work and observe bidding behaviour. The experience will go towards informing your ‘game plan’ for auction. Begin taking note of the recently sold prices in your area of choice so you know what price range to expect.
Ahead of the auction, thoroughly read the contract of sale and get all of your questions answered by the agent before the big day.
It can be easy to get caught up in the moment when the auction is in full swing, so it’s important that you set yourself some limits and goals.
Make a pre-auction offer
It’s not all about auctions. There are other ways to buy a house at auction such as making a pre-auction offer. If you’re unwilling to wait until the auction date, it might be worth making an offer to the vendor to see if they would be willing to accept it.
A private sale has no specified closing date and is usually negotiated between a buyer and vendor with the assistance of an agent or legal representative.
Expression of Interest
Similar to a private sale/ treaty except that a formal written offer is submitted for the property by a specific date.
TIP – Set your limit as an uneven number
People tend to think in round numbers so it could give you an edge. For example, instead of $700,000 set your limit to $703,000.
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