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Buying A Home At Auction
If you are in the market for a new home, your next home or an investment property perhaps you should consider buying a home at auction. Below are some tips on how you can prepare yourself leading up to auction day and on the actual day.
Before the auction
- Finances. It's important to be prepared so try and arrange pre-approval of your finances before the actual auction. That way if you win and you need to write a deposit cheque you can be prepared for buying a home at auction. Make sure you get pre-approval at least two to four weeks before the auction.
- Compare home loans online. To find one of the best home loans deals around with a low interest rate and low fees, compare home loans. online so you are ready on the big day. The table below shows a list of 1 year fixed rate home loans currently available.
- Experience. If you can, visit other auctions so you can get a feel for how they work and the different bidding strategies that people use.
- Set yourself a limit. To get an idea of what price the vendor may have in mind, do you research and look at the prices of property for sale in the area you are considering. Then work out how much you can afford to pay and set yourself a limit. Make sure you don't go over it.
- Changes to contract. If you require any amendments to the contract, make sure you speak to the estate agent beforehand and ask for this in writing. That way if you win the bidding everything is clear and straightforward and both parties are ready.
- Arrive early. This way you can get a good spot and don't feel rushed or stressed before bidding even starts.
- Start low. If you start the bidding, start low. If you start too high then you reduce your chances of it selling within your budget.
- Confidence. When bidding, say it fast and try not to hesitate as sometimes this can appear as a sign of weakness and panic to the other bidders. Also try to remain unemotional as these could be used against you.
