So you've just sold your house (see previous blog –For Sellers – How to Handle the Auction Experience), this is your first time buying, or you're bidding for an investment property. Given the auction frenzy that seems to be occurring in the market at the moment, it seems that whatever your reason for purchase, participating in an auction could very well be a process you'll have to go through to buy a property. Having been through the auction experience many times myself, I thought I'd use this blog to pass along some tips to help make your experience a success – at the right price!
Firstly, and I can't stress this enough, be prepared! Before the auction takes place, do your homework on both the house and the area. Make sure you've inspected the property two or three times and are certain it's right for you and have a building inspection conducted so that you are well aware of any potential issues in advance. Try to get an idea about property values in the area by monitoring sales over past months and have a look around the neighbourhood to determine that it has what you're after in a community.
It is also important to seek expert advice prior to the big day. If you intend to get financing for your home, arrange it beforehand and talk to your loan advisor about how much you can actually afford to spend. Also make sure you have a copy of the contract of sale, and get your solicitor to go through it with a fine-tooth comb. You want to know exactly what is to be included in the sale before going in to buy.
When it comes to auction day, try to stay calm and make sure you have a plan. I can't tell you how many times I've seen bidders get caught up and bid way beyond their means, spending much more than planned. Set yourself a firm limit and stick to it, avoid getting into personal bidding wars with other bidders and try not to get too emotional about a property – there will always be other properties to choose from!
If the auction hammer falls and you are the highest bidder, congratulations! Remember – you're going to need your cheque book to pay the deposit on your new home and you'll need to sign a binding contract. There are no cooling off periods after an auction, so make sure going in that you are 100% sure that this property is for you.
Century 21 agents are local area experts and will be able to assist you with identifying the correct property for you. Pop into a nearby agency and get into your ideal home sooner!