IT is important people understand what’s involved when buying at auction to ensure they have a clear strategy to help stay cool under pressure and secure that property.
Tony Leggett, Principal of RAMS Home Loan Centre Hobart, suggests some simple steps to prepare for the big day.
“Things can often move quickly at auction, so it’s important that buyers are well prepared,” Mr Leggett said.
“Buying a property is a big and exciting step in a person’s life, so it is critical that you do your homework and know what to expect at auction.”
To help buyers be one-step ahead of competitors on auction day, Mr Leggett has some helpful tips to help get the best result.
Arrange a home loan pre-approval so you know how much you can afford.
Determine what your maximum bid is on your chosen property before auction day. This can help stop you getting carried away and bidding more than the property is worth or more than you can afford.
Contact local real estate agents and start looking for a property. Make sure you are on their database for email alerts for upcoming property auctions that meet your criteria.
Attend various open homes and auctions. Even if you are not interested in the property, it will give you a feel for how the process works.
If you are paying by deposit bond, confirm with the agent a few days before that the vendor is happy to accept a deposit bond and if so, make sure you have it with you on the day of the auction.
Register to bid. You can do this by contacting the agent prior to auction or as you arrive at the auction. If you prefer, you can authorise someone else to bid at the auction and sign on your behalf, such as a buyer’s agent or friend.
“With all the pre-auction details organised, it’s time to devise a plan of attack for the big day,” Mr Leggett said.
“I often tell bidders to practice before you get there, control your bids and read your competition.”
For more information, visit Tony Leggett at the RAMS Home Loan Centre at 106 New Town Road, New Town, phone 6228 2033 or visit www.rams.com.au.