Going for an auction? Here are top 5 things you must do before you bid
16 May 2023
The purchase of property in auctions is a great way to buy a property, but it comes with its own set of challenges and risks. Here are some of the key things that buyers need to be mindful and careful of when buying property in auction in Australia.
- Do your research: Before even taking the step to bid on the property, make sure to have done proper research to have deep knowledge and understanding of the property’s condition, location and potential value. This will lead to a better more informed decision about the choice to bid and the highest price to bid till.
- Get pre-approved for financing: Auctions are fast paced which can add to the stressful environment, so it is important to have financing before you start the process of bidding. Make sure you have your pre-approval for a mortgage or have cash on hand to allow for the purchase of the property in case you do win the auction.
- Understanding the auction process: Make sure to understand the rules and regulations of the auction before you officially start bidding. This will help you avoid any possible surprises or misunderstandings during the bidding process.
- Be prepared to act fast: Auctions can be quick, so you have to come prepared to act fast on a property if you wish to bid. Make sure to have all the necessary documents ready to go, and have a proper clear idea of your bidding strategy before you enter the auction. Also be sure to fully understand the terms and conditions of the auction which includes 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 could have hidden defects or any issues that aren’t immediately seen. So make sure to have a good understanding of the condition of the property and be prepared for the possibility to complete repairs and renovations.
Buying property at an auction presents a great opportunity, but it is important to approach it with the necessary caution and prepare for any risks. This can be done by completing research, having a pre-approval 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.
