Property auctions can be filled with anxiety – as a buyer, it’s important to be prepared with a game plan and strategy. Here are our top tips to be prepared for your next auction:
- Secure approval for finance
Before your search begins, be sure to properly secure approval for finance. By getting this pre-approval, you know what your true borrowing power is.
- Get a good feel for the crowd
On the day of the auction, it's important to have a good look at the crowd around you. It will give you a good idea of the type of buyers – those who’ve had auction experience and those who are new to the game.
- Get comfortable at auctions
If you are planning on purchasing via an auction, then visit a few as practice runs. This will give you a good feel of the process, how bids are made, how different auctioneers run bidding and the different strategies of different bidders.
- Do your research
Find out what has been sold in the area and for how much. Get a good idea of the location and the local property trends – by knowing more it will give you confidence on your bidding strategy, your max bid and the market value of the property. Auctions can quickly get out of hand – and its common mistake for first time bidders to quickly bid over market value.
- Have a clear end goal in mind
Go into the auction with a clear bidding strategy in mind. This means, amongst other things, having a final bidding figure – which you will not go over. A clear end goal will also help you have confidence when bidding against fierce competitors.