PREPARING TO BUY AT AUCTION
THAT’S MY HOUSE, OOOPS ITS FOR SALE VIA AUCTION !!!!!!!
It is hard enough trying to find a home that is suitable to your needs and when you do, you discover that is for sale via auction.
Just the thought of it sends people into a panic, to think that you have to bid against other people to buy the home you have dreamed about in an open public arena.
When you consider that the average person will only buy a few homes in their lifetime, how would you expect them to be prepared for such an emotional and financial battle, it can be rather daunting.
Well, take a deep breath and think about why are you searching for a home, what is the reason for all this energy. Once you have realised the reason for wanting to buy a home you may need to become a bit of an expert if you want it bad enough.
In the event that the market is active and homes are being sold via auction you will need to train yourself to be prepared,this means having your mind set, this may take a few months but you will become more familiar with the process and this may save you a large amount of money and not to mention the stress.
To commence your training, educate yourself well with the local market, discover what homes are selling for and how long they are on the market.
Inspect all the homes that are for sale in the suburb and take all brochures and information home so that you can compare and analyze.Dont forget to ask the agent for help and assistance, the agent may have a Fiduciary Relationship with his client but legislation is now changing and the sale of homes is now more transparent than ever before. Once you have familiarised yourself with the local market and have a better understanding of the surroundings you will need to attend live auctions, preferably of homes selling in the suburbs of your choice.
As mentioned, attending live auctions can be daunting but when you don’t have to bid it is a little different. In the event the auction is held in office rooms there may be other properties for sale as well. Position yourself at the rear of the room so that you can see all of the process, pay close attention to the auctioneer as you will discover all auctioneers have their own style, some are more aggressive and others are more laid back, some may even bring along their own music just to lighten things up a little.
The process of the auction sale is clear and open for all , pay close attention to the auctioneers actions and what some agents may be doing in the background.
The auctioneer will commence and seek bids, they don’t care at what price you start at, it’s the final price that they are concerned about. Once the property has reached its reserve price the auctioneer may call it on the market, this means that the property will be sold to the last bidder. In the event the property doesn’t reach the reserve price the listing agent will usually talk to the highest bidder to see if they can negotiate a higher offer to generate a sale.
Once you have attended six to eight auctions in the local area that you desire, you will discover that you have become a lot more familiar with the process and it may not appear as daunting as initially thought.
Be diligent and use all due diligence, make sure your finance is in place and you have had professional reports on the property such as building reports and pest reports. Always take a copy of the contract for sale of land to your solicitor of the property that you are interested in before attending the auction and they will advise you accordingly, as a sale via auction is usually unconditional, always seek professional advise.
On the day that you attend the auction remember your preparation, and chances are that you are better prepared for this event than your opponents.
Set your absolute limit to what you are prepared to pay and bid with confidence. Sometimes it is ok to pay a little more than what you expected.