| Tips to Buying at Auctions

Auction day is both exciting and stressful. It is a day when you really must be cool, calm & rational.

You need a well researched plan and set yourself a strict financial limit.  If you can’t be unemotional, have somebody else or a good buyers agent to do the bidding for you.

What are you bidding on?

Before you go to an auction, be sure you know EXACTLY what you’re bidding on.
You need to do your homework and research:

  • Get a building & pest inspection
  • Research the neighbourhood
  • Research comparative sales
  • What have recent properties in that area sold for?
  • Check the legal title information

There’s no cooling off period when you buy at auction, so you need to be 100% sure you know what you are buying. Pest, building, engineering and structural reports are absolutely crucial

Check the Sale Contract
Have your solicitor / conveyancer check the sale contract. They will find things that you may have missed or miss-understand. Make 100% sure you are fully aware of all the sale conditions.

Have your Finances Sorted
If you win at the auction – You have effectively bought the property. You will usually need to provide a 10% deposit on the spot. You need to have your loan all approved and ready.

The Auction Process
Attend a number of auctions before you participate in an auction. This will help you understand the processes and learn same valuable insights.

Confidence
Be confidence and call out your bids with confidence.

Stay within Your Financial Limits
Calculate what you are willing to spend – and unemotionally stick to that limit. If you exceed your limit you will probably be pay too much and end up struggling to meet mortgage repayments.

Don’t Give Too Much Information Away
Don’t tell the agent too much like the amount you’re willing to pay.

Avoid Hesitation
Counter-bid straight away – to always be in front. This idea of firing off bids with no hesitation confirms to the other bidders that the bid is nowhere near your limit (even if it is).

A Curve Ball to Buy Yourself some Time
If the auction is moving too fast for you, throw in a curve ball. Put in an uneven number bid like say $17,000 and say it as that, not $837,000. This may confuse other bidders & force them to stop & think, slowing the whole thing down a bit.

Leave Emotion at Home
It is easy to get caught up in the excitement, stress and competitive environment of an auction. If you can’t be unemotional, have somebody else or a good buyers agent to do the bidding for you.


Disclaimer:  Although all care is taken.  We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature.  You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever.  We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever

Craig Patterson
Principal

(03) 9347 7677
forsale@craigpatterson.com.au
98 Elgin Street,
Carlton, Vic, 3053,

With more than 30 years of experience in real estate sales, which has rewarded Craig’s clients with intimate access to knowledge and expertise in property matters.

Craig is renowned for his honest advice and excellent reputation. So much so that our customers keep coming back to us.

Their belief is that the person with the name on the door should be fully responsible. Craig is a proud small business owner. Not part of a franchise.

Craig believes that real estate is as much and more about people, than just the property. It’s one of the reasons Craig’s customers prefer him over the express aisle!

Most sales are discrete and ‘off market’ plus traditional Private Sales, and Public Auction Sales when required.

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