Going for an auction? Here are top 5 things you must do before you bid
16 May 2023
Buying property at auction can be a great way to buy a property, but it also comes with its own set of risks and challenges. Here are some key things that buyers need to be mindful of when considering buying property at auction in Australia:
- Do your research: Before you even consider bidding on a property, make sure you have done your due diligence and have a good understanding of the property’s condition, location, and potential value. This will help you make a more informed decision about whether to bid and how much to bid.
- Get pre-approved for financing: Auctions are fast-paced and can be stressful, so it’s important to have your financing in order before you start bidding. Make sure you have pre-approval for a mortgage or have cash on hand to pay for the property if you win the auction.
- Understand the auction process: Make sure you understand the rules and regulations of the auction before you start bidding. This will help you avoid any surprises or misunderstandings during the bidding process.
- Be prepared to act fast: Auctions can be quick, so be prepared to act fast if you decide to bid on a property. Make sure you have all the necessary paperwork and documentation ready to go, and have a clear idea of your bidding strategy before the auction begins. Make sure you understand the terms and conditions of the auction, including the deposit requirements, settlement terms, and any contingencies that may apply.
- Be aware of the risks: Buying property at auction comes with its own set of risks. Be aware that the property may have hidden defects or issues that are not immediately apparent. Make sure you have a good understanding of the property’s condition and be prepared for the possibility that it may need repairs or renovations.
Overall, buying property at auction can be a great opportunity, but it’s important to approach it with caution and be prepared for the risks. By doing your research, getting pre-approved for financing, understanding the auction process, and being aware of the risks and terms and conditions, you’ll be in a better position to make an informed decision and potentially get a great deal on a property