Using a professional agent to help you win at auction is becoming increasingly popular. Not to be confused with a selling agent who works for the vendor, a buyer’s agent can help you find the right property, decide what you’re willing to pay and handle all negotiations.
“We’ve definitely seen an upsurge in an upsurge in buyers’ agents coming into the market to help people,” says Graham Hennessy of Premier Property Auctions.
The main reason for this he says is that buying a home at auction is a very stressful process for most people. “If you’re not used to doing this every day of the week then it can be difficult, especially when your talking about large sums of money from anywhere between $500,000 to $5 million.
“But in the hands of a professional person, you might not have to shave two or three years off your life or go grey over night. You could also have the advantage of getting the property at a keener price than you would if you were trying to do it yourself.”
One advantage of using an agent at auction is that they know your upper limit. “Usually, they will try and buy the property somewhere underneath that limit,” Graham says.
“They get in and participate in the process because they know how the situation works.” You can either use an agent for a full service to search for properties that meet your criteria, suggest a value, and negotiate on your behalf on auction day or by private treaty if you put in an offer before auction. Or you can engage an agent just to attend the auction and bid on your behalf.
Don’t forget to ensure you have your finances lined up as well. Compare home loans online at comparison sites such as RateCity to find a product that suits your needs.
Related mortgage links