In contrast to private treaty sales, you are directly competing against other prospective buyers who are just as interested in the property as you are.
Losing out on the house you have fallen in love with can be demotivating and disappointing.
However, preparation and auction tips come directly from the experts to help you bid smartly, keep your emotions in check and buy the property of your dreams.
Do Your Research
From the moment you initiate property hunting, you should arm yourself with local market knowledge. Attend as many as possible open inspections, find out what comparable properties have been selling for and understand how much stock is for sale. Start attending auctions to observe and analyse how it is conducted. It will help you learn some helpful bidding strategies.
Know Your Limit
Consult with a local mortgage broker who can help you get conditional pre-approval for a mortgage. This will help you get an idea of how much you can borrow. Stick to this limit, and do not overextend yourself at a property auction to realise that you cannot afford the repayments afterwards. When you have a limit in mind, you will bid more assuredly and know when to stop the bidding.
Consider Using A Buyer's Agent
You can also take the assistance of a buyer’s agent to navigate the complexities of an auction and even bid on your behalf. Working with experienced agents can help you in many ways. For instance, you can get expert insights, early property access, time-saving and reduced stress.
Be Ready
Getting a mortgage pre-approval is just one thing. There are additional elements that you need to consider. Most importantly, at an auction, there is no cooling-off period. It means you need to pay the deposit the same day. There will be no opportunity to carry out building and pest inspections; hence, before the bidding, involve the conveyancer reviewing the sale contract and carrying out all necessary inspections beforehand.
Always Remember - There Will Always Be Other Great Properties
Even if you believe you have found just the perfect home of your dreams, remember; there will be other excellent properties in Adelaide. It is not rational to over-commit to a home loan you cannot afford. Once you set your purchase power, please don’t go over it, no matter what.
Our Two Cents
Buying a property at an auction in Adelaide can be stressful. The financial stake is high, and many individuals are out of their comfort zone. Hence, you must have a clear understanding of property auctions. You can always connect for a no-obligation consultation with our investment property experts and learn about investment opportunities.
