Ways you can prepare before an auction
Conduct due diligence
This involves a professional review of the Contract for Sale and the strata report if applicable (Avant Law can assist you with these reviews). Plus don’t forget building & pest inspections.
Research the area
Familiarise yourself with the surrounding neighbourhood and ensure you are happy with what it offers. Knowing the local amenities, transport options, school catchments, distance to shops and pending updates to infrastructure can help determine whether it is the right property & area for you. Avant Property Reports can also provide some of this information.
Negotiate changes to the contract
Despite common perception, some aspects of auction contracts can be negotiated – but must be done well in advance of the auction itself. Engage legal advice such as Avant Law to go over the contract and negotiate changes that will become applicable should you win the auction.
Get your finances in order
If you require finance for the purchase, gaining pre-approval from your lender is essential before bidding at auction. An Avant finance specialist can help you learn your borrowing capacity and find you a solution to suit your unique needs. Therefore, if you win, you will also be ready to pay the deposit amount at the conclusion of the auction. Organize your pre-approval today, here.
Know your limits and set clear boundaries
Purchase price is one of the most important factors when buying property. There is often a fine line between investment and return, and over-paying for a property can be dangerous. Gain valuable information about a property with Avant Property Reports. These reports contain data used by real estate agents and banks, providing insight into a property’s estimated sale value, rental yield and cash flow estimates, suburb growth, suburb demographics, and comparable properties on the market.
On the day
Avoid a “win at all costs” mindset
Gain a clear and objective understanding of the value of the property to you.
Confidence comes from diligent preparation, knowing your boundaries around purchase price, remaining calm, and focused.
Allow proper time
Give yourself enough time to arrive early at the auction location, register and sign-in, find a good vantage point, and be settled.
Stay calm during the auction and don’t give anything away
As you approach your upper limit, avoid giving this away with facial expressions or body language. Have a clear goal of how much you are prepared to spend and bid with confidence whilst you are still within that range.
Have all parties available to sign
If you win the auction, all parties purchasing the property need to be present to sign the Contract or have the appropriate legal authority granted for someone else present to sign on their behalf. Consult Avant Law if you have any questions about this.
Be ready to pay
A deposit will also need to be paid following an auction win, and it is helpful to know which payment methods will be accepted – and ensure you are able to accommodate this. Your Avant finance specialist will be able to assist you with this.
Defining your strategy
Defining an auction strategy comes down to asking the right questions beforehand and understanding the possible variables including different bidding styles, recent comparable sales and even the individual auctioneer.
This information has been provided by Brady Marcs. To read in further detail, click here.